{"id":5425,"date":"2020-11-12T23:00:35","date_gmt":"2020-11-12T23:00:35","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=449646"},"modified":"2020-11-12T23:00:35","modified_gmt":"2020-11-12T23:00:35","slug":"uniswaps-uni-could-be-overextended-as-analysts-eye-a-sharp-retrace","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/uniswaps-uni-could-be-overextended-as-analysts-eye-a-sharp-retrace\/","title":{"rendered":"Uniswap\u2019s UNI Could Be Overextended as Analysts Eye a Sharp Retrace"},"content":{"rendered":"

Uniswap’s UNI governance token has been trading in close tandem with the rest of the blue-chip DeFi assets throughout the past few days.<\/p>\n

Although this has generally boded well for UNI, it has faced some pressure today due to a downturn across all DeFi assets. This decline has largely come about due to Bitcoin ripping higher, sucking the oxygen out of the room.<\/p>\n

Investors are now cycling their recent DeFi profits back into Bitcoin, and these smaller tokens may continue facing pressure on their price until BTC can stabilize.<\/p>\n

Analysts are now noting that Uniswap’s token<\/a> could be on the cusp of seeing a major downside movement, noting that the lower-$3.00 region’s selling pressure could continue hampering its price, potentially causing it to see even further losses in the near-term.<\/p>\n

One immediate catalyst for UNI to see some upside is the end of farming incentives for the various pairs supported around the time of the token’s launch.<\/p>\n

Farmers selling the tokens received from these pairs have been suppressing its price action.<\/p>\n

Once they’re out of the picture, the Uniswap token may be able to catch some strong upwards momentum.<\/p>\n

Uniswap’s UNI Token Struggles to Maintain Momentum as Market Trends Lower<\/strong><\/h2>\n

At the time of writing, Uniswap’s UNI token<\/a> is trading down just over 3% at its current price of $2.89. This marks a notable decline from its recent highs of $3.20 that were set around this time yesterday.<\/p>\n

The resistance here proved to be too much for the cryptocurrency’s buyers to handle, and there’s a strong possibility that it will soon see further downside.<\/p>\n

Furthermore, Bitcoin’s ongoing upswing is placing some pressure on the DeFi sector, so unless BTC begins stabilizing, it may contribute to this ongoing decline seen by the Uniswap token.<\/p>\n

Trader Claims UNI is Poised to Plunge<\/strong> <\/strong><\/h2>\n

While sharing his thoughts on where Uniswap’s UNI token might trend in the near-term, one trader stated<\/a> that he is watching for a sharp downside movement towards $2.50.<\/p>\n

If it can find some significant support at this level and the aggregated DeFi sector also moves higher, it could see a move past its local highs.<\/p>\n

\n

“UNI: To me it feels a bit over-extended although I think we’ll get one more small leg up into white box, which I’ll look to short and take into the lows if the midpoint breaks.”<\/p>\n<\/blockquote>\n

\"Uniswap<\/p>\n

Image Courtesy of Bagsy. Source: UNIUSD on TradingView<\/a>.<\/pre>\n
Because Uniswap’s UNI<\/a> is considered a benchmark DeFi asset, its performance will likely match that of the entire sector going forward.<\/p>\n
Featured image from Unsplash.\nCharts from TradingView<\/a>.<\/pre>\n","protected":false},"excerpt":{"rendered":"
Uniswap’s UNI governance token has been trading in close tandem with the rest of the blue-chip DeFi assets throughout the past…<\/p>\n","protected":false},"author":1,"featured_media":5426,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[190,191,192,177],"class_list":["post-5425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-crypto-news","tag-uni","tag-unibtc","tag-uniusd","tag-uniusdt"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5425"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=5425"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/5426"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=5425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=5425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=5425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}