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- UNI price fell for a few trading sessions to find support in the demand zone.
- Uniswap records increased users as Pepe Mania captures the meme coin market.
Uniswap, a decentralized crypto exchange, witnessed a hike in its transaction count on the exchange due to memecoin frenzy. The reason for the buzz is mostly due to increasing popularity of memecoins, especially Pepe Mania. The launch of the memecoin brought a huge increase to the exchange, which was 66% more than the previous peak. The active users on the exchange increased by 28.3% in the past 7 days, with a drop of 13% in UNI price. The decline in trade size and prices could be the reason for the decrease in fees and revenue collected.
The Picturesque
UNI price marked a fall of more than 14% for three consecutive days. The falling prices found support at $5.430, near the demand zone. A minimal buyer activity is predicted to occur near the demand zone. The Bollinger Bands diverge wide to match the prevailing volatile market. The current price action occurs beneath the EMA ribbon, indicating bearish signals for UNI. The trading volume suggests increasing seller participation due to dropping prices. The downtick in OBV suggests an unfavorable market.
The fall in UNI price makes the bearish trend more intensified as the Super Trends signal a stronger downtrend. The CCI drops and suggests a widening negative difference between the historical prices and UNI price at press time. The MACD forms a negative cross and records tall seller bars in the region below the zero-histogram mark. The RSI falls to 40-range and suggests escalating seller interest.
A Smaller Window
In the four hour time frame, UNI price marks a falling trend, intensifying the bearish momentum. The MACD forms a matching negative cross to indicate the active sellers. The CCI moves around negative 120-range, to signify a pessimistic gap between historical prices and present UNI price. The RSI falls to the oversold zone to demonstrate the overwhelmed sellers present in the market. The indicators in the smaller time frame suggest a possibility of price reversal, as they show peak bearish signals.
Conclusion
UNI price fell despite an increase in the number of transactions on the exchange due to Pepe Mania memecoin. The declining fees and revenue can influence the investors and push them to cause massive selling. The indicators in the smaller time frame suggest a possible price return with minimal buyer action near the demand zone. The holder can rely on the support near $5.430.
Technical levels
Support levels: $5.430 and $4.970
Resistance levels: $6.335 and $6.640
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
