The price of Uniswap has retreated over the last few months, and the recently formed death cross pattern suggests the possibility of further damage.
Uniswap (UNI) token was trading at $ 10 on Tuesday, which was more than 50% of its peak in November. The fall occurred with a rally and a broad ultachin bear market with a bite bitcoin (BTC).
Uniswap is losing market share in decentralized exchange industry, where it was once a major player. According to the Defee Lama, UNISWAP has operated $ 100 billion in trading volumes, now Penkexwap is behind $ 109 billion. Additionally, Uniswap has lost market share for the largest dex radium on Solana (SOL).
Meanwhile, the recently launched Unichain Mainnet is closed for a slow start. data from Defee lamaUnichain has attracted 12 defi networks and total value $ 8.62 million. The largest daps in the ecosystem are Stargate, Uniswap, Venus and Dierswap.
Uniswap aims to give Unichain a position as a primary network for user transactions due to its low fees and multi-chain compatibility.
Despite these challenges, Uniswap Dex remains the most profitable player in the industry. According to Tokenterminal, Uniswap has produced $ 186 million in fees this year, much higher than $ 71 million of pancakexwap.
Another positive indicator is a decline in unite balance on centralized exchanges. The number of uni tokens held on exchanges has come down from 67 million to 61 million earlier this month. The decline in exchange balance suggests that there has been a decrease in sales pressure and an increase in investors’ confidence.
Uniswap value has formed a death cross pattern
The daily chart suggests that the UNI had reached $ 19.44 at the end of last year before the UNI $ 10 crashed. The token has now formed a death cross, where 50-day and 200-day weighted moving averages flip, a major recession in technical analysis.
Additionally, Uniswap has created a recession flag pattern, with a sharp decline after consolidation. The token also fell below 61.8% fibonacci retracement level, a major area where rebellion occurs often.
Given the signs of these recession, the next major support level to see is $ 7, its lowest level this month. However, the recession’s approach will be invalid if the UNI rises above $ 11.20 above the 200-day moving average.
