The price of Uniswap (UNI) has dropped dramatically over the last several days. Although the altcoin saw a strong run at the beginning of the month, corrections occurred, and its value dropped. Technically speaking, the current price drops are expected to continue because the price action has created a bearish reversal pattern.
Uniswap price falls hit bulls
The price of Uniswap has dropped almost 15% over the past seven days, and more drops are probably in store. The bulls, who had been betting on a price gain that failed at UNI and went through the $6.00 support level, endured the recent hits.
Traders who had been holding out their long contracts consequently saw liquidations totaling over $2.2 million. By contrast, the traders who had initiated short contracts reported a total of only $87,000 in liquidations. This indicates that during the course of a week, the bulls saw 25 times more liquidations than the bears.
Given that the price of Uniswap is expected to drop much more over the next few days, this disparity will probably widen and the number of long liquidations will rise.
Uniswap price bearish reversal awaits
With Uniswap trading around $5.74, the Head and Shoulders (H&S) bearish reversal pattern has almost been confirmed. Once UNI consistently develops lows below the neckline defined at $5.81, this pattern will be verified.
A trend reversal can be seen in the head and shoulders pattern. It is composed of two lesser peaks (shoulders) and one higher peak (head), which is noted at $7.81. An upward peak forms the head, a downward peak completes the second shoulder, and an upward trend forms the first shoulder.
A neckline connecting the lows indicates a change in attitude from bullish to bearish. A verified break below the neckline indicates a likely decline. Since the daily candlestick has not yet closed below the neckline, this has not yet happened.
When it happens, the altcoin is probably going to go down a path that might result in a 34% drop, which would take its price down to $3.81. According to the bearish reversal pattern, this is the target price indicated.
Uniswap pricing would have a chance at reversing; nevertheless, if the bearish cues turn bullish, it can take $6.31 back into a floor of support. This would cause UNI to rise above $6.50 and invalidate the bearish pattern.