Connect with us
Active Currencies 13836
Market Cap $2,447,057,027,471.85
Bitcoin Share 52.53%
24h Market Cap Change $-4.11

UNI trades at $4 support; traders can look for this before placing trades

2min Read

Uniswap’s Open Interest took a hit alongside prices in the past 24 hours. This reflected discouraged longs. But the more significant factor was the spot CVD

Uniswap falls to June lows amidst market-wide slump

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • UNI was trading at an HTF support, heightening bullish chances of a recovery
  • The decline in demand suggested otherwise

Uniswap [UNI] saw an update to its Time-Weighted Average Market Maker [TWAMM]. This update is expected to reduce the impact of sudden price swings on large trades. On the price action front, Bitcoin’s [BTC] recent losses saw UNI plunge lower.


Read Uniswap’s [UNI] Price Prediction 2023-24


As previously stated by AMBCrypto, Uniswap has a bearish higher timeframe bias. The report highlighted the $4.5 level as one to short UNI at. This idea was vindicated but the volatility on 2 October saw prices jump to $4.67, which could have stopped some short-sellers.

Will June’s bullish order block be defended?

Uniswap falls to June lows amidst market-wide slump

Source: UNI/USDT on TradingView

Uniswap was trading at the psychological $4 support level at the time of writing. It was also a bullish order block on the one-day chart from mid-June. There were two ways to look at UNI. The first was from a range-bound perspective.

The range (orange) extended from $4.03 to $4.68. The presence of the daily Order Block (OB) meant the chance of a bounce was good. The market structure and momentum were bearish, with the Relative Strength Index (RSI) at 31. More importantly, the On-Balance Volume (OBV) would need to see a bounce to reflect buying pressure. A continued decline in the OBV would reflect bearish dominance, which leads to the second scenario for UNI.

The Fibonacci levels (pale yellow) showed southward extension levels at $3.9 and $3.65 as possible targets for UNI in the event of a drop below the OB. After a drop below $4, a retest of the $4-$4.1 zone could present an ideal shorting opportunity.

The lack of spot demand meant further losses had a higher likelihood

Uniswap falls to June lows amidst market-wide slump

Source: Coinalyze

The Open Interest (OI) took a hit alongside prices in the past 24 hours. This reflected discouraged longs. But the more significant factor was the spot Cumulative Volume Delta (CVD). This indicator has trended downward since 9 October.


How much are 1, 10, or 100 UNI worth today?


It was unlikely that UNI could embark on a rally to the range highs if the spot CVD continued to stay flat or declined. Hence, unless this changes, traders can anticipate losses in the coming days.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.