Uniswap Price Forecast: UNI engages reverse gears as massive price correction to $2.5 looms

Uniswap is balancing at the edge of a stiff cliff while bears swing into action aiming for $2.5.
The 200 SMA is in line to offer a cushion at $3.4 and prevent a sharp fall in the price.

Uniswap is striding on an uneven ground after a recent rejection at $3.8. Before, UNI had embraced support at $3.45, hence the short-lived recovery. Meanwhile, a correction that could potentially become massive is underway.

Uniswap is on the cusp of a symmetrical triangle breakdown

The decentralized finance token is trading within the confines of a symmetrical triangle. The pattern forms when the price creates a series of lower highs and another series of higher lows. Trendlines are used to connect the peaks and lows.

A breakout can occur either above or below the triangle, but it happens before the trendlines converge. At the time of writing, UNI is trading at $3.5. The immediate upside is capped by the 50 Simple Moving Average and the 100 SMA.

The token is about to dive under the lower trendline, which might result in a massive downswing to $0.25. Tentative support at the 200 SMA is likely to absorb some of the selling pressure, preventing Uniswap from spiraling sharply.

UNI/USD 4-hour chart

On the flip side, closing the day within the triangle might invalidate the bearish narrative. Moreover, a reversal above the hurdle created by the 50 SMA and 100 SMA would call for more buy orders. If the demand for Uniswap surges, a breakout above the triangle will culminate in a massive upswing to price levels beyond $5.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.