Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- UNI’s daily chart structure was still bearish.
- Short-term selling pressure eased slightly at press time.
Uniswap [UNI] has been oscillating between $5.2 and $6.5 from early March until now. On 22 April, UNI’s sharp drop hit a key demand zone below $5.5 and has steadied in the past few days in the lower range.
At press time, lower candlestick wicks at the demand zone reiterated that bulls were fighting to secure the support to attempt a recovery.
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On the other hand, Bitcoin [BTC] retreated to $28k but was fixated on reclaiming $29k at press time. If BTC comfortably reclaims $29k and surges, UNI bulls could front a recovery.
Is a retest of the supply zone likely?
Source: UNI/USDT on TradingView
The support zone (cyan) of $5.228 – $5.494 has been a key bullish order block preventing any extended plunge below $5.5 in the past few weeks. The long lower wicks at the demand zone indicate that bulls are on-site, suggesting a likely rally could occur if the support doesn’t crack.
As such, UNI/USDT pair could rally to the supply level and bearish order block of $6.5. If that’s the case, buying at current levels could offer a good risk ratio. But bulls must clear the FVG (fair value gap) range of $5.565 – $5.658 (white) and $5.811 hurdles to gain more leverage.
On the downside, sellers could gain more traction if the support cracks. The downswing could slow at lower support levels of $4.964 and $4.712.
Meanwhile, the RSI attempted recovery from the lower range – confirming mild buying pressure. However, the OBV was still low, highlighting limited trading volumes and demand needed for a strong recovery at press time.
Short-term selling pressure eased
Source: Santiment
Read Uniswap [UNI] Price Prediction 2023-24
According to Santiment, supply on exchanges dipped slightly at press time. Similarly, the exchange flow balance was negative, collectively confirming that more UNI tokens were moved out of CEXs (central exchanges). It means there was a decline in short-term selling pressure in the past few days.
On the other hand, buying pressure edged up slightly, as shown by an increase in supply outside of exchanges – denoting a short-term accumulation trend.
UNI could attempt a recovery if the trend persists, alongside an upswing in BTC price action. However, BTC’s sharp drop could undermine bulls’ efforts.
