Uniswap Price Forecast: UNI Fiercely Battles Stubborn Downtrend amid Surge in On-chain Transactions
- Uniswap price sustains a downtrend within a descending parallel channel as bulls and bears lock horns.
- On-chain data by IntoTheBlock reveals an uptick in network transactions, adding weight to a potential price recovery.
Uniswap price has gained ground since the plunge to $14 last week. Following support at this level, Uniswap acclimated into a reflex recovery that saw it close the gap to $20. Nevertheless, the uptrend was delayed, forcing UNI to seek support toward $18.
In the meantime, Uniswap trades at $18.65 amid a heated tug of war between the bulls and the bears. Note that closing the day above $20 is crucial to the resumption of the uptrend. On the other hand, losing the immediate support at $18 will likely trigger massive losses.
Is Uniswap price correction stoppable?
Uniswap is trading within the confines of a descending parallel channel on the 12-hour chart. The recovery from support at $14 made it above the middle boundary resistance but stalled at the channel’s upper edge. With a retreat from the barrier underway, bulls hope to hold $18 and perhaps renew the uptrend aiming for areas above $20.
However, if the short-term is shattered, we can expect more sell orders to be triggered and lead to a further correction. The resistance turned support at the middle boundary is in line to halt the declines from hitting $15 and $14.
UNI/USD 12-hour chart
The Moving Average Convergence Divergence (MACD) indicator in the exact timeframe has a vivid bullish signal. It follows a bullish signal that emanated from the 12-day exponential moving average crossing above the 26-day moving average. If the indicator that follows the trend of an asset and calculates the momentum moves above the zero line into the positive region, Uniswap price uptrend will resume.
Consequently, Uniswap must close the day above the channel’s upper boundary to ascertain the uptrend. Besides, breaking the barrier at $20, highlighted by the 50 Simple Moving Average (SMA), will significantly enhance UNI.
According to IntoTheBlock, the level of transaction activity on the Uniswap network has started to recover. With this metric, users can gauge the level of activity and volume and compare it with the asset’s price action.
For instance, the number of transactions has increased from roughly 2,800, recorded on June 17 and tracked on a monthly trailing average, to the current 4,970. The chart below shows a relation between the transactions and the price.
Uniswap number of on-chain transactions uptick
As the transactions decrease, Uniswap price tends to dip. On the other hand, the surge in the number of transactions is expected to help lift UNI higher if it sustains the uptrend.