Uniswap’s UNI token has been struggling to garner any strong momentum as of late, with buyers and sellers largely reaching an impasse as the cryptocurrency trades within the lower-$3.00 region.
It has been facing some heightened pressure in recent days due to the intensity of the sell-off seen across the aggregated altcoin market. Once again, DeFi tokens are being hit the hardest by this, and UNI is now widely viewed as a benchmark bet on the sector.
Despite the intensity of its recent selloff, analysts are still noting that it may be well-poised to see some further upside in the near-term.
One trader is noting that a move past $4.00 could be imminent, but it is imperative that it first reclaims a key support level that was lost during its overnight selloff.
If it remains below this level, it could be in a precarious position that causes it to see further downside in the near-term.
Where it trends next will likely depend primarily on the aggregated DeFi sector.
Uniswap’s UNI Faces Intense Selling Pressure as DeFi Altcoins Tank
At the time of writing, Uniswap’s UNI token is trading down just under 3% at its current price of $3.035. This is around the price at which it has been trading throughout the entire morning.
Bulls have tried and failed on multiple occasions to garner significant control over the cryptocurrency’s near-term outlook, with each surge being met with serious selling pressure.
It is still trading well above its recent lows in the mid-$2.50 region set during a capitulatory selloff seen just a couple of weeks ago, but this level may soon be revisited if bulls are unable to spark any intense buying activity.
Analyst: UNI Could Rally Past $4.00 if Bulls Reclaim Key Support
Before the overnight drop seen by the Uniswap token, the cryptocurrency has been stabilizing above its support between $3.15 and $3.20.
Although this region has since been lost, a break back above could help lead the cryptocurrency past $4.00.
“Looking good here as we hold the area between $3.15-3.20. If this holds, I think the $3.60 resistance breaks towards $4 and possibly $4.30 next.”
Image Courtesy of Crypto Michaël. Source: UNIUSD on TradingView.
The DeFi sector has become a high beta fragment of the crypto market, which means that it will require significant stability amongst both the stock market and the benchmark digital assets for it to push any higher.
This means that Uniswap’s UNI token may continue facing some turbulence in the short-term.
Featured image from Unsplash. Charts from TradingView.