Uniswap’s newly launched governance token has taken a serious hit in the past few days, with its price witnessing the relentless selling pressure that slowed the UNI rise and caused it to smash multiple fundamental technical levels.
Analysts are now interested in the short-term outlook of the cryptocurrency as the recent selling pressure has dealt a serious blow to the market structure. An analyst now points out that the last channel support level he is watching closely is breaking up and that significantly more downsides may be imminent in the coming days.
UNI May Decline Up To $ 2.5
As for how much it might drop in the near term, a popular trader who has been keeping a close eye on UNI’s price action now points out that a drop towards $ 2.50 could be imminent. This is where the token has significant support that can slow its descent and possibly cause a trend reversal.
However, it is not clear how sustainable any short-term trend reversal could be, as there are no catalysts that could cause the price of the UNI to rise.
Investors Run Away, UNI Continues to Fall
At the time of writing, Uniswap’s UNI token was trading with a drop of over 13% at its current price of $ 2.75. This marks a notable decline from daily highs of about $ 3.40.
The cryptocurrency is trading at its lowest since its price peaked at $ 8.50 in the days following its launch last month. Until there are upstream catalysts such as the launch of the Uniswap V3 or a fee distribution proposal, it remains unclear whether any sustainable upward momentum will be seen for the UNI.