Uniswap Price Prediction: UNI gathers dark clouds, foreshadows a crash to $6

• Uniswap price tanks another 2% in European trading this Thursday.
• UNI has briefly broken out of its ascending trend channel – a sign that the rally is stalling.
• Once the pivotal support breaks to the downside, expect a nosedive move toward $6 or even $5.80.

Uniswap (UNI) price is seeing another tailwind being added to the large backpack it is carrying. At the time of writing this article, President Volodymyr Zelenskyy is set to take the stage in Brussels with a plea for fighter jets. With his demand not being rejected in the UK on Wednesday, a risk is present that the EU might give the green light and alternatively trigger a green light from Moscow to use nuclear weaponry. 

Uniswap price weighed down as Zelenskyy arrives in Brussels

Uniswap price is being pulled to the downside as the market’s tail risks just grew a bit more after the UK did not push back firmly against Zelenskyy’s plea for fighter jets. This Thursday, the President will be in Brussels to speak to the EU Council, where he will ask for the same package. The EU is caught between a rock and a hard place as delivering those jets could trigger the green light in Russia for more unconventional or even nuclear retaliation, while not delivering them could bring a humanitarian crisis if the expected next Russian offensive attack occurs before the agreement. 

These headwinds for UNI are being seen on the chart as price action briefly broke below the ascending trend channel. Luckily, the 200-day Simple Moving Average (SMA) at $6.46 stepped in to give support. Once that same support breaks, the road is paved for a nosedive move toward at least $6 near the 55-day SMA.

UNI/USD daily chart

The current price level has moved back into the ascending trend channel. If it stays put, that would mean that the channel is still intact. UNI price action could move back toward $7.60 then with the monthly R1 resistance level at $7.40 as an anchor level to try and turn into support. If the bulls can pull that off, $7.80 comes into play with a possible bullish breakout trade.