Uniswap (UNI) has been declining after seeing a slight bullish momentum in the market. Currently, the cryptocurrency is moving in tandem with the market – going downhill. At the time of writing, Uniswap stands at a price level of $17.16. The price has declined by 4% in the past twenty-four hours while the trading volume has dropped by 12%.
Uniswap (UNI) technical analysis
The market outlook for UNI coin is strongly bearish. Out of the total twenty-six technical indicators, sixteen are giving out a signal of sell with ten indicators standing at a neutral position with zero indicators at buy. Both the oscillators and moving averages are strongly bearish.
Uniswap has been identified to be operating in a triangle formation. The cryptocurrency has been oscillating up and down inside the formation and the bearish momentum in the market indicates towards a break out to the downside from the formation. The lower boundary of the formation has been established as a strong support level and if the level is not sustained, the bears can gain momentum. If the bearish scenario plays out, the price target set at $9.90 will be activated followed by $6.90.
Uniswap’s “DeFi Education Fund” dumped
Uniswap had been tangled in controversy because of its DeFi Education Fund which is a lobby fund. The DEF was introduced by Harvard Law Blockchain – a student organization aimed at increasing the adoption and awareness of the blockchain technology. The lobby fund has received $20 million or 1 million UNI tokens to be used for the purpose and the fund is to be allocated over a period of five years. Many users were not in support of the DEF already; however, the fund liquidated $10 million right away which further worsened the situation. The organization argues that the liquidation gives them more flexibility in spending the funds.
