Uniswap [UNI] He is defending $4.95, but the bulls are slowly losing ground. Here’s why…

The information provided does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author

  • As of press time, the bulls have successfully defended the $4.95 support level on Uniswap.
  • However, long-term investors should wait a while before making the next move.

Uniswap [UNI] He didn’t have an upward slant when he wrote this. The bulls valiantly defended the $5 support level. It was an important level from a psychological point of view as well.


How many UNIs can you get for $1?


Since the sellers have the upper hand, traders can look for opportunities to follow the larger trend. A move to the $5.3 region could provide such an opportunity.

The bearish break of H12 is holding back the advance, and the buying pressure is also declining

Source: UNI/USDT on TradingView

The market structure on the 12-hour chart was strongly bearish for Uniswap. This showed that traders can look for short selling opportunities. The past 10 days saw low volume, but On Balance Volume (OBV) showed that until then sellers were the dominant force.

OBV has formed lower peaks over the past three weeks. The Relative Strength Index (RSI) has also moved below its neutral 50 line to indicate a bearish trend. However, with the RSI threatening to make higher peaks with the price forming the highest lows since December 19, a bearish divergence could develop in the coming days.

This should reinforce the downward pressure behind UNI. It was already trading within the break-down on the 12-hour time frame in the region of $5.26-$5.43 (highlighted in red).

A retest of this area can provide a good risk-reward shorting opportunity. Meanwhile, closing the session above $5.43 suggests that the bulls may push towards the $5.82 to $5.88 range.


An 80.66x increase is on the cards if Uniswap reaches Bitcoin’s market cap?


The Fibonacci retracement levels (in yellow) showed that until the $6.6 level is breached, the higher time frame trend will remain bearish. However, this does not exclude slight upward movements. Long-term buyers can wait for a return above $6.6 before assessing the market again.

The coin’s average age and MVRV ratio have been very successful highlighting the strength of the sellers

Uniswap managed to defend $4.95 but the bulls are slowly losing steam

Source: feeling

Santiment data showed that the growth of the Uniswap network was subdued throughout the Christmas season. However, it was higher than the growth in October. A decrease in the 30-day market value to realized value (MVRV) ratio meant that those with the shorter date range earned $6.3 in profit. The asset is undervalued, as measured by the MVRV, but this does not guarantee a buy signal by itself.

The coin’s 90-day average life also fell during the sell-off earlier in December. This described a flurry of token movements between addresses and was probably due to seller activity. Over the past few days, although the scale has been on the rise, it was not showing a steady upward trend at the time of writing. Accumulation over the next week or two may precede higher prices.

Leave a Reply

Your email address will not be published. Required fields are marked *