Why Is Uniswap (UNI) Price Unable to Breach Past $10?

Why Is Uniswap (UNI) Price Unable to Breach Past $10?

Key Notes

Key Notes:

This sluggish adoption of Uniswap DEX has raised concerns about V4’s utility and dampened investor enthusiasm.UNI price remains stalled at $9.65, struggling to break the $10.06 resistance level.If bearish trends persist, UNI may consolidate between $10.06 and $8.76 or face further declines to $8.23, increasing losses for investors.

Leading decentralized exchange (DEX) Uniswap has been struggling to gain enough traction amid a tepid response to the recent V4 upgrade. As a result, the Uniswap price UNI $9.06 24h volatility: 4.6% Market cap: $5.44 B Vol. 24h: $213.33 M rally has stalled with bulls unable to take it past $10.

There are several factors why the Uniswap price rally has stalled under $10 such as the broader market turbulence apart from the tepid response to the V4 adoption.

The launch of Uniswap’s V4 decentralized exchange (DEX) has failed to meet the expectations in terms of adoption. V4 currently accounts for just 0.01% of Uniswap’s total trading volume, a stark contrast to the rapid success of earlier versions. Uniswap V3 and V2 captured 40% and 20% of the market share, respectively, within just 12 days of their releases.

Source: Messari

The slow adoption of Uniswap V4 has raised questions about the DEX’s practical use cases. Many users have shown reluctance to migrate from the more established V3. Thus, the muted enthusiasm around V4’s debut has contributed to downward pressure on Uniswap price.

As of now, the Uniswap price is trading at $9.65, and has struggled to surpass the $10.06 resistance level since the start of the month. If bearish conditions persist, UNI could consolidate between $10.06 and $8.76, delaying any significant recovery and increasing vulnerability to further declines. A drop below $8.76 could push the price down to $8.23, potentially amplifying losses for investors.

Source: TradingView

On the other hand, if Uniswap manages to boost the V4 adoption, it could surpass the $10.06 resistance level and turn it into a support zone. This breakthrough would pave the way for UNI to climb higher, targeting $11.96 and potentially reversing the prevailing bearish sentiment. However, the key to this price surge hinges on successful integration and the increased usage of the V4 upgrade.

But considering other technical indicators such as the Relative Strength Index (RSI), which is currently in the neutral zone of 50, the Uniswap price action remains underwhelming from a technical standpoint.

Source: TradingView

Although the RSI has shown a slight uptick, signaling modest bullish momentum, it remains insufficient to indicate a meaningful recovery. This weak bullish momentum suggests Uniswap may continue to face hurdles before achieving a sustained rally. The altcoin is unlikely to gain traction until the RSI moves decisively above 50.0, demonstrating stronger buying pressure.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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