Uniswap has traded range bound for several months and is likely to explode in one direction.
Uniswap price to make a move
Uniswap price has been in a bear market since the beginning of 2021. As of December 22nd, the Ethereum-based swap tokens are at an 88% loss of market value since all-time highs. As devastating as the loss sounds, early investors who participated in the UNI launch in October of 2021 are still up 1,600%.
Uniswap price currently auctions at $5.33. A Fibonacci retracement tool surrounding the all-time lows and all-time highs shows the current trading range within the bounds of the 50% retracement level. If the previous low at $4.64 is breached again, UNI’s trading range could tread into the 2021 liquidity levels near $3 and below.
The 61.8% Fibonacci zone, commonly nicknamed the “Golden Pocket zone,” is positioned at $2.43. The UNI price has not retested the boundary since the 16X rally of 2021. A piercing of the boundary results in a 50% decline from Uniswap’s current market value.
The 50-month, 100-month and 200-month simple moving averages (MMA) add additional confluence that the 50% decline is possible. At the time of writing, all three indicators are coiling above the current auctioning price. Classical technical analysis traders confidently call UNI within a downtrend based on the indicator’s position in the market.
A spike and consolidation above the 50-day SMA would create bullish potential. The 50-day MMA is 17% above the current price of $6.28. A hurdle over the boundary would create the potential to retrace into the 100-day MMA at $7.87. Uniswap price would rise by 54% if the bulls were successful.