Uniswap’s UNI token has been struggling to garner any sustainable upwards momentum over the past few days and weeks, with each rally being met with massive inflows of selling pressure that force its price lower.
There are no immediate catalysts for it to see any significant upside, as it will still be quite some time before any governance proposal is put forward and passed to distribute fees to holders, and there’s no definitive date for when V3 of the platform will be released.
Until either of these two events take place, it remains unclear as to when the cryptocurrency will be able to see any sustained upwards momentum.
One narrative that could bolster the cryptocurrency in the future is the regulatory clampdown and series of hacks seen by centralized exchanges as of late.
The $150m KuCoin hack a few weeks ago directed a spotlight onto the risks incurred by holding capital on centralized platforms. The recent arrest of the OKEx founder – which resulted in 200,000 BTC being locked within the platform, further bolstered the case for DEXs.
Despite this growing narrative, one analyst believes that Uniswap’s UNI will continue plunging lower in the days and weeks ahead, potentially hitting the lower-$2.00 region.
Uniswap’s UNI Struggles to Gain Momentum as Selling Pressure Mounts
Directly following the recent news of OKEx’s crypto withdraws being suspended, Uniswap’s token price rocketed higher, signaling that investors anticipated this news to provide DEXs with a boost.
It has since surrendered these gains and is currently trading down marginally at its current price of $3.00.
It does appear that a break below the $3.00 support level is imminent, which could kick off a fresh bout of selling pressure.
Analyst: UNI Likely to Plunge Towards $2.00 Before Rebounding
However, he does note that the token could get a near-term boost if Yearn.finance decides to switch strategies from Curve to Uniswap in the near-term.
“UNI I’m shorting everything above $3.2. Alpha leak: Expecting YFI to change strategy from CRV to UNI long before UNI v3 launch,” he said.
Image Courtesy of Mac. Source: UNIUSD on TradingView.
Unless there’s some catalyst that shifts its near-term trend, Uniswap’s UNI will likely continue drifting lower in the near-term.
Featured image from Unsplash. Charts from TradingView.