Uniswap Price Dives Below Major Support & TVL Plunges By 10%

• Uniswap price has declined by 21% in the past twelve days.
• The trading volume has reached $400 million, with a jump of 10% within 24 hours.

Uniswap (UNI) price has witnessed strong buying momentum in November and the first week of December. The bullish trend was interrupted near the $19 territory, and sellers took over the trend.

Uniswap price has kept falling because of resistance from a descending trendline. However, the UNI price has defended a significant support level of $12 since December while sellers dragged it down.

Over the last 30 days, Uniswap‘s total value locked (TVL) has fallen by more than 10%. This indicated a general drop in Polygon‘s decentralized finance (DeFi) activity. According to DefiLlama, Uniswap’s TVL was at $108 Million, down 11.5% for the month.

Additionally, this decline showed a downward trend for other DeFi protocols on the Polygon. This included Balancer and Aave, whose TVL also decreased during that time.

Meanwhile, despite its retraction, Uniswap was still a prominent DeFi platform. About $844 Million was the total value of the assets locked on Polygon.

UNI Price Drops Alongside TVL Decline

The data aggregator claimed that Uniswap’s TVL also decreased. By December 3, it had fallen to just $3 Billion from its peak of $4.91 Billion on November 8.

Alongside this decline, Uniswap has seen a sharp decline in value. The UNI price has dropped slightly more than 30% in the past 30 days, from nearly $16 to its current trading price of $12.

Charts from CoinMarketCap and TradingView demonstrated that the coin has been considered poorly by the market. A price cascade has marked the recent price behavior of Uniswap. However, there was a minor increase from $11.50 to $12 at the end of January.

The price decline of UNI can be attributed to several factors. First, DeFi engagement has decreased generally. The primary causes of this are macroeconomic uncertainty and the indifference of online traders.

As a result, trading volume has decreased. Rivalry among DeFi products, notably more modern Layer-2 solutions and other decentralized exchanges, has impacted Uniswap’s TVL and token price.

UNI Price Below Major Support Level: What’s Next?

When writing, the UNI price was trading at $11.94, advanced by 1.84% over the past 24 hours. Moving ahead, the market capitalization was $7.16 Billion.

Based on the technical chart, the price has been in a bearish trend and has declined below the major support below the $12 mark. After losing this level, the Uniswap crypto declined by 14% in just two days but managed to recover these losses.

if the price bounces back and exceeds the $12 mark, it could be a Whale involvement. Once the Uniswap surpasses the $12 level, sellers might panic, and buyers might be confident. A decent bullish rally can be anticipated if the price starts trading over the $15 mark.

On the other hand, if the UNI price remains below the $12 mark, it could be a bearish signal. Sellers may dominate if the price falls below another support level of $10.80. Furthermore, a profit-booking scenario could emerge.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.