Uniswap Price Prediction: UNI at risk of falling towards $14 as whales go into a selling frenzy
- Uniswap price is contained inside an ascending parallel channel on the 4-hour chart.
- Whales have been selling a lot of UNI tokens in the past three days, increasing selling pressure.
- If a key support level at $19.7 breaks, Uniswap can quickly drop below $15.
Uniswap has been trading inside a strong uptrend since December 2020. However, in the past week, there has been a significant shift in momentum in favor of the bears which are looking for a massive 25% breakdown.
Uniswap price must defend key support level to avoid a 25% fall
On the 4-hour chart, Uniswap established an ascending parallel channel with a key support trendline at $19.7. Losing this level will push Uniswap price down to $14.8, a 25% drop calculated by using the height of the parallel channel as a reference guide.
UNI/USD 4-hour chart
The number of whales holding between 1,000,000 and 10,000,000 UNI tokens ($20,000,000 and $200,000,000) has sharply declined from 66 on February 13 to only 63 now, indicating that large holders have exited their positions as they believe Uniswap price could decline even more.
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UNI Holders Distribution chart
However, if UNI bulls can defend the key support level at $19.7 of the ascending parallel channel, they can expect a significant rebound. Currently, Uniswap price faces two critical resistance points at the 100-SMA and 50-SMA levels on the 4-hour chart.
UNI/USD 4-hour chart
Climbing above both resistance levels and establishing them as support can quickly push Uniswap price up to $22.5 at the middle trendline of the parallel channel and as high as $24.5, at the top.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
