Uniswap Price Needs to Hold above $13.00 to Avoid a washout
The Uniswap price is consolidating above a critical support level. This article looks at the potential outcomes for UNI into year-end.
Uniswap (UNI) is slightly higher at $14.90 (+2.9%) in early trading on Tuesday, Dec.21. The Decentralized exchange’s native Token UNI continues to consolidate at the 6-month lows, almost 68% below the May peak. Today’s slight bounce has lifted the projects market cap close to $10b, placing UNI at #19, preserving its place as a top-20 cryptocurrency.
The writing has been on the wall for some time for Uniswap. On Nov.30th, with the Uniswap price trading at $20, we stated, ‘Downside pressure persists, targets $13.00.‘ And within 5-days, Uniswap traded as low as $13.49 before bouncing 35%, prompting us to ask, ‘Is it time to fade the bounce?’. Indeed, it was, and the price has continued to head lower since. Subsequently, the token is in danger of breaking down. However, if UNI maintains a price above $13.00, buyers may be encouraged to add exposure to the token.
UNI Price Forecast
Analyzing the daily chart, I expect a binary outcome in the next few weeks. If the Uniswap price stays above the May flash-crash low of $13.00, it should form a base, eventually moving higher towards $20.00.
On the other hand, a daily close below $13.00 brings $10.00 and potentially the January lows around $4.40 into view. In my opinion, considering the confusion surrounding the crypto market, either scenario is possible. And for that reason, the immediate outlook is neutral, awaiting confirmation.
Uniswap Price Chart (daily)
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