Uniswap’s UNI governance token has been trading in close tandem with the rest of the blue-chip DeFi assets throughout the past few days.
Although this has generally boded well for UNI, it has faced some pressure today due to a downturn across all DeFi assets. This decline has largely come about due to Bitcoin ripping higher, sucking the oxygen out of the room.
Investors are now cycling their recent DeFi profits back into Bitcoin, and these smaller tokens may continue facing pressure on their price until BTC can stabilize.
Analysts are now noting that Uniswap’s token could be on the cusp of seeing a major downside movement, noting that the lower-$3.00 region’s selling pressure could continue hampering its price, potentially causing it to see even further losses in the near-term.
One immediate catalyst for UNI to see some upside is the end of farming incentives for the various pairs supported around the time of the token’s launch.