What's behind Uniswap's latest 9.5% price pullback?

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Uniswap drops 9.52% today to $6.948

Highlights

Uniswap's UNI token faced selling pressure as Bitcoin dropped below $80,000, triggering ETF outflows and broad crypto liquidations.
The platform saw 13,137 new UNI addresses in one day in late October, its highest daily increase since September 2020, with active addresses at a four-year high.
UNI trades below short- and medium-term moving averages with technical indicators showing sustained downside momentum and an expected range of $6.3315 to $8.163 over five days.

Network activity surges amid record address growth and persistent sell pressure

Uniswap's UNI token was affected by the recent market downturn attributed to Bitcoin falling below $80,000, ETF outflows, and widespread liquidations of leveraged positions across the crypto sector. Throughout this period, Uniswap recorded 13,137 new UNI addresses in one day in late October, its highest since September 2020, and active addresses reached a four-year high. The decentralized exchange also surpassed $20 billion in cumulative trading volume for tokenized stocks, with upcoming native cross-chain interoperability between Optimism and Uniswap Labs announced for December 15, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes persistent technical and fundamental weakness in Uniswap. UNI's fall below short-term averages confirms a bearish structure, intensified by negative sentiment from Bitcoin's slide and large-scale liquidations. He points out that despite some growth in new addresses and trading activity, these have failed to translate into positive price momentum. Technical indicators reflect dominant selling pressure, with little sign of reversal. Kharitonov cautions, "Unless UNI regains $7.031 soon, sellers may drive it towards $6.3315 or lower."

Viktoras Karapetjanc, expert at Traders Union, sees strong fundamental growth potential for Uniswap. He points to record new address creation and historic trading volumes as signs of deepening adoption and market relevance. The upcoming interoperability launch and sustained network activity reinforce a bullish long-term outlook. Despite current price pressure, he believes market structure is supportive of future upside. As Karapetjanc says, "Uniswap’s core fundamentals and network growth signal that further recovery and opportunities remain on the horizon for UNI."

Sholanke Dele, market strategist, focuses on macro sentiment headwinds dragging UNI. He notes sector-wide liquidations and ETF outflows are weighing on risk appetite. Dele is concerned that market mood remains defensive and sustained confidence is lacking. Broader crypto market risks continue to drive cautious positioning. Dele warns, "Until sector sentiment shifts, UNI’s chances of a strong rebound are limited."

Technical momentum weak despite long-term support holding above 200-day average

UNI/USD remains under pressure, trading below its 20-day and 50-day moving averages at $7.1293 and $7.9551. The price stays above the 200-day average at $4.8121, providing a bullish longer-term context. Key levels are set with immediate resistance at $7.031 and support at $6.812. Technical indicators show broadly negative momentum, with both MACD and Average Directional Index indicating persistent selling. Oscillators, including RSI, Stochastic RSI, and CCI, are currently neutral, while Bull/Bear Power reflects some intraday buyer activity and the Awesome Oscillator remains neutral. The price is tracking in the mid-range for the session after opening with a significant downside gap, and intraday volatility is at 3.21%.

Earlier, analysts noted that Uniswap continued to face strong selling momentum despite ongoing protocol development and new compliance features. The current analysis strengthens this view with evidence of persistent downside risk and suggests traders should closely monitor the $6.812 support level for potential further declines.

Source of Data: UNI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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