Uniswap UNI price sits atop one of its final price support level zones before a significant sell-off will likely occur. Despite having price recovered over 33% of its flash-crash losses, buyers appear to be abandoning Uniswap UNI in the interim.

Uniswap price perilously close to a significant drop

Uniswap UNI price, from an Ichimoku perspective, is overwhelmingly bearish on the daily price chart. It is currently positioned for a re-entry based on the Ideal Bearish Ichimoku Breakout setup, which Uniswap UNI now fulfills all requirements. These requirements are:

1.       The current price close below the Tenkan-Sen.

2.       The current price close below the Kijun-Sen.

3.       The current price close below the Cloud.

4.       The Chikou Span is below the candlesticks pattern and in open space.

a.       Open space is a condition where the Chikou Span will not intercept the bodies of any candlesticks pattern over the next five to ten periods.

5.       Future Span A below Future Span B.

The rules for adding to an existing short term when the Idea Bearish Ichimoku Breakout setup is complete vary but generally focus on crosses below the Tenkan-Sen or failed tests above the Tenkan-Sen. The latter of which is valid for Uniswap may encourage more short-sellers to pile in.

Failure to hold the price of $16 price level could trigger a fast move towards the 88.6% Fibonacci retracement level at $10.30. A word of warning for any bulls attempting to add between price of $16 and $10: the volume profile becomes thinner the further Uniswap moves down – meaning Uniswap price will accelerate its decline the lower it goes.

Bulls could quickly invalidate any near-term bearish sentiment and bias by rallying Uniswap to a close above the Kijun-Sen and 50% Fibonacci retracement level at $19.75.

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