Uniswap’s token (UNI) has been bearing witness to immense volatility throughout the past few days, with its post-launch price action being surprisingly strong – considering that all users of the platform were airdropped a sizeable quantity of tokens.
After rallying to highs of $8.50 in the days following its launch, the token has since witnessed massive inflows of selling pressure that brought its price down to lows of $3.75.
Bulls have since stepped up and absorbed this selling pressure, pushing it back up towards the $5.00 region as they aim at reversing its recent downtrend.
There’s still a long way to go before bulls can propel the crypto back up to its highs, but the recent price action seen by UNI does seem to indicate that its multi-day lows will mark a long-term bottom.
One analyst is now explaining that the construction of a higher low could indicate that the mid-to-upper $3.00 region is a strong base of support that will ultimately become a mid-term bottom.
Uniswap’s UNI Token Gains Momentum Following Sharp Drawdown
Throughout the past few days, Uniswap’s governance token – called UNI – has been caught within the throes of an intense downtrend. This decline came about rather suddenly after it rallied to highs of $8.50 in the days following its launch.
This rally was hype induced, with retail investors and traders all pouring massive sums of capital into the crypto.
Once it reached the $8.00 region, its momentum began slowing, and bulls were no longer able to maintain their control over its trend.
The rejection at $8.50 was grim and ultimately caused Uniswap’s UNI token to set lows of $3.75 yesterday.
Analyst: UNI Could Form a Long-Term Bottom as Bulls Attempt a Trend Reversal
At the time of writing, UNI is trading up over 17% at its current price of $4.58. This marks a massive surge from its daily lows.
One analyst believes that this potent reaction to the cryptocurrency’s recent lows indicates that a long-term bottom is in sight and that further upside could be imminent.
“Uniswap: Slight trend shift? Nice higher high occurring here, through which I’d want to see $3.75-3.90 hold as support. If so, a higher low is constructed and the price of $UNI can continue moving upwards.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Because Uniswap’s UNI token has been able to rise in the face of turbulence in the rest of the market, this may indicate that it has been oversold and that further upside is imminent in the days ahead.
Featured image from Unsplash. Charts from TradingView.