Uniswap’s token has dropped to a crucial support level even as Unichain, its layer-2 network, continued its strong momentum.
Uniswap (UNI) price dropped to $5.26 on Saturday, down by over 72% from its highest point this year, and is hovering at its lowest level since Aug. 5.
The decline is because of the ongoing sell-off in the crypto market as tensions on trade continued. It also happened as it lost market share to other popular decentralized exchanges like Raydium, Orca, and PancakeSwap.
According to DeFi Llama, Uniswap has transacted over $48 billion in volume in the last 30 days. PancakeSwap processed $33.6 billion, while Raydium and Orca handled $11.3 billion and $13 billion, respectively.
On the positive side, Unichain, its recently-launched layer-2 network, has continued to gain market share. Protocols in the network processed over $329 million in the last seven days, bringing its 30-day volume to $301 million.
Unichain has overtaken other larger layer-1 and layer-2 network, including Core, Stacks, Internet Computer, Scroll, Algorand, and Injective.
Uniswap launched Unichain to be a better chain for decentralized exchanges. It has cheaper execution, cross-chain liquidity, and instant transactions.
Meanwhile, Uniswap’s fees have remained steady this year. According to TokenTerminal, the network has handled over $301 million in fees this year, higher than Ethereum’s (ETH) $234 million and AAVE’s (AAVE) $206 million.
Uniswap price analysis
Technicals suggest that UNI price may be on the verge of a bullish breakout in the near term. It has dropped to the support at $5.25, which coincides with the trendline that connects the lowest levels since 2022.
Uniswap price has formed a giant megaphone pattern, a popular bullish sign. This pattern has two ascending and diverging trendlines.
Therefore, the coin will likely have a strong bullish breakout in the coming months as bulls target last year’s high of $19.32, which is 275% above the current level. A drop below the lower side of the megaphone will invalidate the bullish view and point to a drop to $3.4, its lowest level in 2022.
