Uniswap price decline has reached 25.75% over the past month. Specifically, UNI slid to $6.93. However, on-chain data shows new users arriving at the fastest pace since November 2022.
Santiment counted 2,295 new UNI wallets in a single day. The firm said that influx could firm up a price base. That requires wallet creation to stay elevated.
Why the Uniswap price decline matters
Santiment’s network growth metric counts first-time UNI interactions. A four-year high signals a large influx of new participants. Santiment credited new Uniswap v4 features and wider liquidity routing. Ongoing work on Unichain, Uniswap’s layer-2 network, also contributed.
DefiLlama data shows Uniswap v4 now holds about $1.44 billion in total value locked. That marks a roughly 17% rise over the past month.
However, the activity has not stopped the token’s decline. UNI is down 3.82% over the past 24 hours. That adds to its monthly losses, per TradingView data.
Uniswap price decline follows $10 rejection
Analyst Phoenix traced the decline to seller pressure after UNI tested $10. He noted the price has since dropped below the Ichimoku cloud. It also fell below its moving averages on shrinking volume.
Phoenix warned that a full breakdown of $7 could send UNI toward $6 to $6.50. The token now sits just under that line at $6.93.
Santiment framed the same level in terms of user demand. “Holding $7 while network growth remains above its baseline would favor another test of $8,” the post read. “Losing $7 alongside fading wallet creation would suggest short-term excitement.”
Key levels to watch for UNI
Winning back losses starts with a move above $7. Santiment named $7.50 as the first meaningful level. Then $8 follows.
On October 21, analyst Scient flagged bullish four-hour divergences. He floated a possible squeeze similar to Zcash’s.
Analyst Defi Rocketeer finds the $7 area more interesting than the rally near $11. He expects a $10 to $12 retest if the market stabilizes. Analyst CryptoBullet places major resistance at $13 to $15.
For holders, watch Santiment’s network growth readings. Also watch whether UNI can close above $7. A recovery in both would bring the $8 test back into play.
