UNI/USD has slid by nearly 12% amid widespread selling in the crypto market

Uniswap (UNI) has corrected 11.7% in the past 24 hours to dive to lows of $27 as the crypto market saw a widespread selloff.

The broader crypto market is seeing huge losses, with all the top cryptocurrencies declining by over 5%. Theta (THETA) and Polkadot (DOT) having seen the biggest losses of 15% and 14% respectively.

Litecoin (LTC) and XRP have also lost double-digits, while Bitcoin (BTC) and Ethereum (ETH) have dipped 6.95% and 7% to trade around $52,340 and $1,589 respectively.

Cryptocurrency market price map. Source: Coin360

Uniswap price outlook

The indecision shown on 22 March resolved downwards with bears taking the initiative to push prices lower. Uniswap (UNI) has broken below a bullish trend line and the 20-day exponential moving average at $29.83.

The sell-off below the horizontal support at $28 has even extended to intraday lows of $25.50. Bulls’ attempts to buy the dip and recover above $30 have so far hit a snag below the 100 SMA.

The technical picture suggests further declines are possible. The MACD continues to increase momentum in the bearish zone, while the RSI also gives bears the upper hand as it trends just above 44.

If UNI/USD drops past key support at $25.00, increased panic selling could accelerate the decline to the next cushion at $22.50. The main anchor in case of further downside action is at $20.00.

UNI/USD daily chart. Source: TradingView

On the contrary, buyers could use the short-term correction towards $25.00 as an opportunity to embark on aggressive buying. This will likely drive Uniswap prices higher, with a flip above $28.00 the first positive sign.

If momentum sets UNI/USD past the strong overhead resistance at the 20-day EMA ($29.83), bulls could go for further gains above $30.00.

A clear breakout to the old ascending trend line will put Uniswap price near $33.00. From here, buy-side pressure is likely to push the token’s price to a daily close above the $35.00 hurdle. If this happens, UNI/USD could retest resistance at an all-time high of $36.41 reached on 23 March 2021.

In the short term, new targets in an uptrend would be $40 and then $42.00.

This post was originally published on Coinjournal.