Uniswap Price Prediction: UNI at risk of 35% correction

Uniswap price is under threat of another significant push south.
Bulls will need to show convincing momentum and defense to prevent a collapse.
Extremely bearish conditions across the board.

Uniswap price sits atop one of its final price support zones before a significant sell-off will likely occur. Despite having recovered over 33% of its flash-crash losses, buyers appear to be abandoning Uniswap in the interim.

Uniswap price perilously close to a significant drop

Uniswap price, from an Ichimoku perspective, is overwhelmingly bearish on the daily chart. It is currently positioned for a re-entry based on the Ideal Bearish Ichimoku Breakout setup, which Uniswap now fulfills all requirements. These requirements are:

1. The current close below the Tenkan-Sen.

2. The current close below the Kijun-Sen.

3. The current close below the Cloud.

4. The Chikou Span is below the candlesticks and in open space.

a. Open space is a condition where the Chikou Span will not intercept the bodies of any candlesticks over the next five to ten periods.

5. Future Span A below Future Span B.

The rules for adding to an existing short when the Idea Bearish Ichimoku Breakout setup is complete vary but generally focus on crosses below the Tenkan-Sen or failed tests above the Tenkan-Sen. The latter of which is valid for Uniswap price may encourage more short-sellers to pile in.

UNI/USDT Daily Ichimoku Chart

Failure to hold the $16 price level could trigger a fast move towards the 88.6% Fibonacci retracement at $10.30. A word of warning for any bulls attempting to add between $16 and $10: the volume profile becomes thinner the further Uniswap price moves down – meaning Uniswap will accelerate its decline the lower it goes.

Bulls could quickly invalidate any near-term bearish sentiment and bias by rallying Uniswap price to a close above the Kijun-Sen and 50% Fibonacci retracement at $19.75.

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