Uniswap bulls to target $6.5 next, details here
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The price action of UNI underlined a bullish bias as prices climbed above $6 once more.
- There has been some selling pressure over the past week but it was not enough to defeat the buyers.
On 17 July, Uniswap [UNI] announced that it was improving its on-chain trading with an upgraded protocol. The objective was to expand operations beyond the Ethereum [ETH] network, with other popular chains in their sight already. Yet the report also highlighted a drop in the number of active users.
Is your portfolio green? Check the Uniswap Profit Calculator
This could be a sign that demand for the token could drop in the coming weeks. Technical analysis showed that UNI remained bullish. Its adventure above $6 underlined bullish intent, with the next major resistance at $6.5. Bitcoin [BTC] would need to have neutral or bullish momentum, otherwise, it could sway sentiment across the market.
The $5.8 was convincingly flipped to support but bulls haven’t seized the $6 region yetThe market structure of UNI on the H4 chart was bullish after the move above $5.36 on 13 July. The most recent higher low sat at $5.81, which coincided with a higher timeframe level of significance. The $5.8-$5.9 region served as support in March and April of 2023. This zone appears to have been flipped to support once again.
This meant that bulls were free to drive prices higher, although a period of consolidation was possible. The $6 level was also psychologically important apart from its proximity to $5.8, making it harder for bulls to force a way through.
The DMI was in agreement with the findings from the price action of UNI and showed a strong uptrend in progress with both the +DI (green) and ADX (yellow) above the 20 value. However, the CMF showed no significant capital flow into the market.
How much are 1, 10, or 100 UNI worth today?
Uniswap funding rate dropped in recent hours- does this signal the beginning of a shift in sentiment?It has been hard for buyers to push past resistance over the past week, and one reason for that could be the selling pressure that has taken over. Since 18 July the spot CVD noted a negative slope that flattened out on 22 July, indicating increased selling pressure last week.
More recently, the Open Interest saw a sharp drop on 22 July when UNI prices dropped from $6.2 to $5.955. This was not conclusive evidence for a move toward $5.8, but indicated short-term bearishness.