Uniswap: Another resistance level claimed – how high can rally go?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Uniswap jumped by 14% to flip the $5.72 price level to support.
- Buyers’ dominance of long/short ratio highlighted market sentiment.
A recent price report highlighted the buying opportunity available for Uniswap [UNI] bulls on the higher timeframes. This buying opportunity was utilized to the maximum by bulls, as UNI flipped the $5.72 resistance level to support.
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Despite Bitcoin [BTC] experiencing a sharp correction that dropped it to $30.3k, the overall sentiment in the market remained bullish. This could be significant for altcoins such as UNI, as buyers look to achieve more gains in the long term.
Buying pressure sees $5.72 resistance cave in
Uniswap has been on an aggressive bullish rebound after it touched the 2023 low of $3.64 on 10 June. Since then, UNI has recorded gains of 68.2% over a month-long period. These gains have seen it flip resistance levels at $4.34, $4.87, and $5.21.
Building on this bullish resurgence, UNI claimed another resistance level over the past 48 hours with a strong bullish close on the 12-hour timeframe. While the general market correction limited any further gains after flipping the level, the signals hinted at more bullish yields.
The Relative Strength Index (RSI) remained just below the overbought zone, denoting heightened buying pressure. Similarly, the On Balance Volume (OBV) moved northwards, reinforcing an increase in demand for Uniswap.
Ambitious UNI buyers can look to ride the buying wave to $7 from the $5.72 support level. However, a potential area to watch will be the minor resistance at the $6.37 price level, as this was a key level for bearish activity in mid-April.
Longs hold upper hand in futures market
How much are 1,10,100 UNIs worth today?
According to data from Coinglass exchange long/short ratio, UNI longs held a notable 52.5% share of the open positions. This translated to $25.02M worth of long positions which was $2.42M more than short positions.
The trend in the futures market reinforced near-term bullish sentiment, with Uniswap investors primed to take advantage of a bullish Bitcoin to rally again.