Uniswap: Bulls stand tall despite this minor retracement
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- UNI suffered a 14.3% retracement to dampen the bullish momentum.
- Bulls were strengthened by rising demand and steady capital inflows.
Uniswap’s [UNI] bullish advancement faltered at the $5.50 price zone with a 14.3% retracement. This saw UNI dip briefly to the $4.87 support level on 28 June. However, as of press time, Uniswap was up again by 8% to trade at $5.25.
Is your portfolio green? Check out the UNI Profit Calculator
With the buying momentum gaining steam after breaking above the bearish lower low, bulls could flip UNI’s market structure bullish on the 12-hour timeframe. This will be highly dependent on bulls successfully reclaiming the $5.72 level.
Buying pressure sees retracement fizzle out
UNI made a remarkable recovery after price hit the year-low of $3.62 on 10 June. Since then, the decentralized exchange token has posted overall gains of 50.4% between 10 June and 25 June. This led to price rebounding as high as $5.52. The ensuing retracement at the price level led to a brief dip before a continuation of the uptrend.
The retracement saw the Relative Strength Indicator (RSI) dip to the neutral 50 from the overbought zone between 26 June and 28 June. However, it stood at 60, as of the time of writing to hint at rising demand again. The Chaikin Money Flow (CMF) also recorded a massive jump in capital inflows on 24 June and maintained its positive outlook with a reading of +0.22.
With the on-chart indicators flashing bullish, UNI could surge further with $5.72 and $6.38 serving as immediate targets. Conversely, a rejection at any of the bullish targets could open an entry for sellers with $4.87 within range.
Futures market looking to ride bullish wave
Data from Coinglass showed rising interest in UNI’s bullish progress. Uniswap’s exchange long/short ratio had longs in a commanding position at 52.09% on the 12-hour timeframe.
How much are 1,10,100 UNIs worth today?
Additionally, the Funding Rate was steadily positive. Together, these favorable signals from the futures market could amplify the prospects of UNI’s 12H structure flipping bullish.