Uniswap: Retest of $5,095 Support May Have Traders Looking for…

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only

  • UNI has been on a decline in price which could settle at $5,095
  • A break above $5,388 will invalidate the bearish expectations above

Uniswap’s [UNI] The extended downtrend since early December has wiped out more than 20% of the asset’s value, dropping from $6.55 to $5.01 on December 24th.

UNI has been trading in a range since Dec 17 after being rejected several times around the $5,388 level. At the time of writing, UNI is trading at $5,228, but it could go lower if the sellers gain more influence in the market.

Read Uniswap’s [UNI] predict the price 2023-24

UNI is going down: will the withdrawal continue?

Source: TradingView

In addition, balance sheet volume (OBV) declined steadily in early December, indicating that UNI experienced a decline in trading volume during the month. This undermined the buying pressure, which limited the upside but allowed sellers to push prices lower.

Therefore, if the selling pressure increases, UNI may decline and extend the decline to settle at $5,095 or $5,014. A revisit of these important support levels could be a short selling target.

Although the Chaikin Money Flow (CMF) indicator moving to the midpoint may indicate a trend reversal, historical trends do not support a convincing price reversal. A sharp price reversal is likely if the CMF cross coincides with the RSI cross above or below the 50 mid-point.

Therefore, UNI could drop lower and retest the support at $5,095 or $5,014.

How do Many UNIs Can i get 1 dollar

However, an intraday candle closing above the bearish order block around $5,388 would refute the above expectations. Such an upside move would make UNI target the 200-period EMA (Exponential Moving Average) at $5,630.

UNI has seen declining demand in the derivatives market

Source: CoinGlass

According to Konglas, UNI’s open interest fell in August, rose slightly in October, and then declined. As a result, demand for UNI in the derivatives markets has fallen from around $70 million in August to around $40 million at press time.

This trend can be seen as a bearish outlook, as demand for UNI has fallen sharply over the past three months.

The total UNI value locked (TVL) across all chains has fallen sharply. to me devilamaUNI’s TVL is down from about $6 billion in August to $3 billion at press time. This represents a decrease of 50% in three months.

As a result, bearish expectations in the derivatives market could affect the price of UNI. However, a bullish BTC might revive the upside potential and invalidate the above bearish predictions.

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