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- UNI fell below $6,381 after BTC’s short-term bearish move
- A break below the $6.10 support represents a selling opportunity
Uniswap [UNI] It fell below $6,381 after Bitcoin [BTC] It fell below $17.32K on December 5th. At the time of publication, UNI was trading at $6.17 and BTC was holding a bit of the $17k support. Thus, any further bearish move in bitcoin could lead to a UNI break of the bullish order block and the support area at $6.10.
Read Uniswap’s [UNI] Price forecast 2023-2024
A break above $6.10 could provide a short opportunity if UNI drops to the 61.8% Fibonacci retracement level ($6.01). But can the bears maintain the momentum?
UNI Showing Bearish Divergence: Will Bears Push It Down?
UNI was in a correction that could retest or break the current support at $6.10. However, based on the technical indicators, UNI was likely to break the current support level and go lower.
In particular, the four-hour chart showed a decline in the Relative Strength Index (RSI). This indicates that the buying pressure has been steadily weakening, which has given great strength to the sellers. In addition, there was a bearish divergence between the RSI and the price action. This may indicate a possible further downtrend for UNI.
Therefore, UNI could drop to $6.01 if sellers continue to gain leverage. This would be the target for the short stop, so traders can get the difference if they sell at $6.10 and buy back at $6.01.
However, the risk-reward ratio was not very high, and a break of the resistance at $6.25 would counter the bearish outlook mentioned above. In this case, the immediate target of the uptrend could be the bearish order block at $6.39.
UNI posted gains and a slight decline in development activity
According to Santiment, the 30-day market value to realized value (MVRV) ratio was positive. This showed that UNI short holders have registered gains in recent days.
However, UNI development activity is down sharply at the time of publication after having increased steadily recently. Due to the significant impact on the price of UNI, this sharp decline may lead to further bearishness. However, if BTC develops an upward trend, UNI may enter an uptrend and invalidate the above bearish predictions.