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The attempt of Uniswapto break past the critical $12.3 resistance has fallen short, giving bears the upper hand and triggering a fresh decline. Despite bullish efforts to push higher, selling pressure at this key level proved too strong, forcing UNI into a downward move. This failure to sustaingains above $12.3 has raised concerns about a potential deeper retracement, as sellers look to capitalize on the weakness.
With bearish pressure mounting, UNI’s price action suggests that bulls may need to regroup before attempting another breakout. Will the token find support and recover, or is a deeper decline on the horizon? Why Bulls Failed To Break $12.3: Market Sentiment Explained
Uniswap’s failure to break past the $12.3 resistancelevel highlights a shift in market sentiment, where bearish pressure outweighed bullish momentum. Despite multiple attempts by buyers to push higher, the resistance proved too strong, leading to increased selling activity. This suggests that traders saw $12.3 as a key take-profit zone, reducing upward strength and allowing bears to regain control. Related Reading Uniswap Stays On Course For More Gains – $12.3 Resistance In Sight 3 days ago
Another factor contributing to the rejection is overall market uncertainty. If broader crypto market conditions remain weak or investors hesitate to commit to higher price levels, bullish breakouts become harder to sustain. Uniswap faces risks of deeper decline | Source: UNIUSDT on Tradingview.com
Uniswap trading below the 100-day Simple Moving Average (SMA) combined with a weakening RSI indicates significant bearish pressure. The 100-day SMA, often seen as a key indicator of the longer-term trend, suggests that the market sentimentis tilted toward selling.
Additionally, the ongoing decline in the RSI indicates that selling pressure is growing stronger. As the indicator drops below the 50% level and moves closer to the oversold zone, it implies that bearishmovement is picking up pace.
For Uniswap to regain strength, buyers must reclaim momentumand establish strong support to fuel another breakout attempt. Until then, market sentiment leans bearish, keeping the risk of further downside in play. Key Support Levels To Watch As Uniswap Slides
As Uniswap slides lower, key support levels will be crucial in determining whether the price can stabilize or if more declines are likely. The first notable support lies around $10.3, which has historically acted as a base for price action. If UNI fails to hold this level, the next area of support to watch is around $8.7, where the price could find more significant buying interest. Related Reading Uniswap Consolidates At $17: A Calm Before The Bullish Storm? 1 month ago
Should both levels be breached, UNI might face deeper declines, with $6.7 as the next key support level. These support zones will be key indicatorsfor traders looking to determine whether the price can stabilize or if the bearish momentum will continue to drive UNI lower. UNI trading at $11.5 on the 1D chart | Source: UNIUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com