If Uniswap's price confirms a break below the key trendline support, it could drop to $3.3 in the coming days.
In addition to the price movement, Uniswap is also facing a significant decline in network activity. According to DeFi NewsLlama, the platform's total locked value has fallen to $3.31 billion, far below the record of $6.3 billion set last August.
Meanwhile, the weekly fees generated by the DeFi News protocol have shrunk to nearly a quarter of the levels seen in October.
Source: DeFi NewsLlama
Uniswap Price Analysis
On the daily chart, Uniswap's price is about to break below the rising trendline that has served as dynamic support since February of this year.
UNI/USDT Daily Price Chart — March 18 | Source: crypto.news
If this trendline support is broken, bears may push the price down to the support zone at $3.3, where bulls previously staged a rebound.
Technical indicators seem to support this bearish outlook, showing that bears are gaining momentum. Notably, the Supertrend indicator has turned red, and the MACD line is approaching a bearish cross, indicating that the current resistance path is downward.
However, from a more detailed perspective, the rising trendline is part of an ascending triangle pattern on the chart, with horizontal resistance at $4.1. If Uniswap's price can rebound and break above this level, it may confirm a bullish pattern, ending the current correction and pushing the price back up to previous highs.