• Uniswap price is contained inside an ascending parallel channel on the 4-hour chart.
  • Whales have been selling a lot of UNI tokens in the past three days, increasing selling pressure.
  • If a key support level at $19.7 breaks, Uniswap can quickly drop below $15.

Uniswap has been trading inside a strong uptrend since December 2020. However, in the past week, there has been a significant shift in momentum in favor of the bears which are looking for a massive 25% breakdown. 

Uniswap price must defend key support level to avoid a 25% fall

On the 4-hour chart, Uniswap established an ascending parallel channel with a key support trendline at $19.7. Losing this level will push Uniswap price down to $14.8, a 25% drop calculated by using the height of the parallel channel as a reference guide.

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UNI/USD 4-hour chart

The number of whales holding between 1,000,000 and 10,000,000 UNI tokens ($20,000,000 and $200,000,000) has sharply declined from 66 on February 13 to only 63 now, indicating that large holders have exited their positions as they believe Uniswap price could decline even more.

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UNI Holders Distribution chart

However, if UNI bulls can defend the key support level at $19.7 of the ascending parallel channel, they can expect a significant rebound. Currently, Uniswap price faces two critical resistance points at the 100-SMA and 50-SMA levels on the 4-hour chart.

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UNI/USD 4-hour chart

Climbing above both resistance levels and establishing them as support can quickly push Uniswap price up to $22.5 at the middle trendline of the parallel channel and as high as $24.5, at the top.  

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