UNI price has been sliding lower over the past few days, and there’s no end in sight to its ongoing descent

By Selena On Oct 6, 2020

UNI price has been sliding lower over the past few days, and there’s no end in sight to its ongoing descent. This selloff’s strength has been intense and has struck a serious blow to both investor sentiment and its market structure.

Many analysts are now noting that the cryptocurrency is at risk of seeing significantly further downside in the days and weeks ahead, which may come about regardless of how the entire market trends. If UNI incurs a downtrend independent from the rest of the market, this could further perpetuate the weakness it has been experiencing as a result of its unrelenting selloff.

UNI/USD 4-hour chart | Source: TradingView

UNI price incurs intense downtrend

At press time, Uniswap’s goveance token UNI is trading down over 13% at its current price of $3.2. The cryptocurrency has been sliding lower over the past few days and weeks, with buyers being unable to absorb the intense selling pressure it has been facing.

This downtrend first began when it peaked at highs of $8.5 in the week following its launch. This uptrend resulted from massive hype and FOMO that dissipated quickly, leading a trail of losses and bagholders in its wake. Because many individuals received their UNI tokens via an airdrop, they may also be apt to sell as the price slides lower to take this free money off the table.

Crypto trader Mac bearishly noted in a recent tweet that a distribution pattern is currently playing out for the Uniswap token, which could mean that a serious downside is imminent in the days ahead.

He also notes that a dip below $3.50 could catalyze a much farther-reaching decline:

“Sadly, this still looks like massive distribution. Lose $3.5, and it’s going a lot lower.”

Unless the DeFi sector rebounds in the coming days, Uniswap’s embattled UNI token may soon see even further blood.

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