Uniswap’s Price Retreats Amid Death Cross Pattern and Bearish Flag Formation

The price of Uniswap’s UNI token has declined significantly over the past few months, losing over 50% of its value since its peak in November. As of Tuesday, the token was trading at $10, down from its previous high. This decline coincides with the stalled rally of Bitcoin (BTC) and the broader altcoin bear market.

Uniswap Loses Market Share in Decentralized Exchange Industry

Uniswap has been losing ground in the decentralized exchange industry, where it was once the dominant player. According to data, Uniswap has handled $100 billion in trading volume, now trailing behind PancakeSwap’s $109 billion. Additionally, Uniswap has lost market share to .

Unichain Mainnet Slow Start

The recently launched Unichain mainnet has had a slow start. Data shows that Unichain has attracted 12 DeFi networks and a total value locked of $8.62 million. The biggest dApps in the ecosystem are Stargate, Uniswap, Venus, and DyorSwap. Uniswap aims to position Unichain as the primary network for user transactions due to its lower fees and multi-chain compatibility.

Uniswap Remains the Most Profitable DEX Player

Despite the challenges, Uniswap remains the most profitable player in the DEX industry. According to data, Uniswap has generated $186 million in fees this year, significantly higher than PancakeSwap’s $71 million.

Decline in UNI Token Balances on Centralized Exchanges

A positive indicator is the decline in UNI token balances on centralized exchanges. The number of UNI tokens held on exchanges has dropped from 67 million earlier this month to 61 million. A decline in exchange balances suggests reduced sell pressure and increased investor confidence.

Bearish Technical Signals

The daily chart shows that UNI peaked at $19.44 late last year before crashing to $10. The token has now formed a death cross pattern, where the 50-day and 200-day Weighted Moving Averages have flipped, a key bearish continuation signal in technical analysis. Additionally, Uniswap has formed a bearish flag pattern, which consists of a sharp decline followed by consolidation.

Key Support and Resistance Levels

Given these bearish signals, the next key support level to watch is $7, its lowest level this month. However, the bearish outlook would be invalidated if UNI rises above the 200-day moving average at $11.20.

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Key Takeaways:

  • Uniswap’s UNI token has declined significantly over the past few months.
  • Uniswap has lost market share in the decentralized exchange industry.
  • Unichain mainnet has had a slow start.
  • Uniswap remains the most profitable player in the DEX industry.
  • Decline in UNI token balances on centralized exchanges suggests reduced sell pressure and increased investor confidence.
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