Uniswap Price Prediction: Will Bears Force a Downswing Below $4?
Uniswap’s price recovery attempts in September have faced a major obstacle around the $4.30 territory. On-chain analysis reveals important insights about Uniswap’s price prediction for the coming weeks.
After a Brief Rebound, Network Demand Has Nosedived This Week
Following a brief resurgence in mid-September, Uniswap network demand has once again entered a downtrend this week. On-chain data shows that only 3.9 million UNI tokens were deployed in network transactions on September 25, representing a 67% drop-off compared to September 16.
This decrease in network activity suggests dwindling demand, which could negatively impact Uniswap’s price unless it starts trending upward.
Uniswap Holders Remain Wary of a Bearish Reversal
The Uniswap price has declined throughout most of September due to increased exchange deposits. Data reveals that the total Uniswap tokens held in exchange-hosted wallets have increased from 45.3 million at the end of August to 47.02 million as of September 26.
This net inflow of 1.7 million tokens deposited across various exchanges indicates a prevailing bearish sentiment, potentially leading to a sell-off.
UNI Price Prediction: Potential Drop Toward $3
Losing the $4 support level could trigger a price drop toward $3 before finding significant support. The In/Out of Money Around Price data supports this narrative, showing that many addresses bought UNI tokens at the minimum price of $4.16.
If the bearish sentiment intensifies, the UNI price is likely to drop toward $3. However, a rebound is possible if last-minute buys occur to cover positions.
Hot Take: Uniswap Bulls and the $6 Resistance
Uniswap bulls have a chance to regain control if the price rebounds above $6. However, there are 42,300 addresses that bought UNI tokens at a maximum price of $5.81. If exchange reserves remain high, these addresses could book early profits and push Uniswap into a bearish reversal.
If the bulls can overcome this sell wall, then Uniswap’s price could break above $6 for the first time since early August.
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