Bad closing in April for Uniswap (UNI), with a red candle recording -45.63% representing the worst monthly close in its history. Currently, the price is 7,090 USDT and, compared to the annual high reached last March, it is down by 58%.
In the yesterday’s day recorded a further decline of 8.40%, which helped push UNI into negative territory as well annual basis, with liabilities contained at 2%. This figure is mitigated thanks to the excellent performance recorded in January with +85%.
Uniswap collapses in April
On the Monthly chartwe can observe a historical overview of the price of UNI, where we can see how the current decline has eaten up all the rise made since the beginning of the year.
April 2024 records the worst monthly close of Uniswap from its history. To find one closure similar to the current one, we must go back to the beginning of its listing, in October 2020, when it recorded a -45.50%. On this historical view, it is clear how far the current price is from its May 2021 ATH when it reached $45, from which it is down 83%.
Despite this bearish situation, Uniswap currently has a market capitalization of $4.250 billion and is ranked twenty-third on Coin Market Cap.
Uniswap first DEX for TVL and volumes
Uniswap is a decentralized platform DEX, based on technology blockchain of Ethereumand allows users to trade crypto directly without a central intermediary.
Currently, Uniswap occupies the first position in the appropriate DEX rankingboth for TVL (total value locked) equal to 5.623 billion and trading volumes. This data can be seen from the attached image of the specialized site DefiLlama. Furthermore, it can be seen how the Total TVL in DeFiof the world of DEXs stands at 20.29 billion.
The reason for the current decline
Uniswap’s recent decline in April was influenced by specific Uniswap actions SEC (US Securities Exchange Commission) led in its anti-crypto battle by Gary Gensler.
Uniswap has received a notice of investigation, Wells notice, which more often than not leads to a subpoena and related court case. The probable accusation is of operating as a broker security not registered.
Uniswap situation on the weekly chart
On a weekly chart of Uniswap we observe thetrend over the last two years. The price found a base, in the $4 area, and traded in a range of around 80%, from September 2022 to February 2024.
The price of UNI, in October 2023, touched a low at $3.823 followed by a period of rise which led it to touch the area of resistance at $7.20 towards the end of 2023.
The resistance was broken on the upside only with lbeginning of this February, when Uniswap, made the bullish push, increasing by approximately +135% in just three weeks. This movement led the price to reach the annual maximum of $17.
Looking at the graph, you can see how the price of UNI in the leg up has approached the first significant resistance passing into the area $17.50. From this level it began to retrace, with an acceleration at the beginning of April and a red candle of -34%, coinciding with the news relating to the SEC investigation.
The short-term scenario on Uniswap
Analyzing the daily chart, we go into detail about the April movement of Uniswap. On the way down, the price broke the support in the $10.50 area which had previously been tested a couple of times. The decline continued until reaching a low of $6, marked by a sharp bearish spike.
Short-term resistance
After the decline, the price of UNI experienced a shy reboundwhich is already stalling on the first short-term resistance at $8.20. The most critical resistance level in the short term lies at $8.90. Exceeding this level could start a more decisive phase of price recovery.
