At the time of writing, Uniswap’s governance token – called UNI – is trading down over 5% at its current price of $3.54. The cryptocurrency has been sliding lower over the past few days and weeks, with buyers being unable to absorb the intense selling pressure it has been facing.
This downtrend first began when it peaked at highs of $8.50 in the week following its launch. This uptrend was the result of massive hype and “fomo” that dissipated quickly, leading a trail of losses and bagholders in its wake.
Because many individuals received their UNI tokens via an airdrop, they may also be apt to sell as the price slides lower in order to take this free money off the table.
Analyst: UNI Could Be Poised for Serious Losses
One trader bearishly noted in a recent tweet that a distribution pattern is currently playing out for the Uniswap token, which could mean that serious downside is imminent in the days ahead.
He also notes that a dip below $3.50 could catalyze a much farther-reaching decline.
“Sadly this still looks like massive distribution. Lose $3.5 and it’s going a lot lower,” he said.