Uniswap: How high can the bullish streak go?
Uniswap's recovery hit Q2 price ceiling but overall price action was bullish - Which way will price sway?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The trendline support was respected and validated.
- Open Interest rates surged; short positions discouraged.
Uniswap [UNI] has maintained its recovery despite the recent muted Bitcoin [BTC] price performance. The native DEX altcoin has rallied over 60% from a mid-June low of $3.8 to over $6.0 at the time of writing. But the price action inched closer to its Q2 2023 price ceiling of $6.5.
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The DEX platform recently received financial backing to improve its v4 protocol to remain dominant.
Will the trendline support hold?
So far, the trendline support has been respected and validated. It has acted as a crucial support since mid-June. The retest of the confluence of the trendline support and the bullish order block of $5.68 – $5.98 (cyan) offered buying opportunities, with a target of $6.45.
Although a successful retest of $6.5 could offer over 10% gains, the target ($6.5) is a crucial resistance level and Q2 price ceiling.
Given the weak BTC, <29.5k, a price rejection at the price ceiling could set UNI to head to the trendline support again. The trendline support could be a bid level for late bulls again. Above the Q2 price ceiling, the next resistance level is $6.9.
Conversely, an extended pullback below the trendline support and the bullish OB will flip the bias to bearish.
The RSI and CMF were bullish, reinforcing strong buying pressure and capital inflows to the UNI market.
How much are 1,10,100 UNIs worth today?
Open Interest rates surged; shorts discouraged
According to Coinglass, there was a surge in Open Interest (OI) rates from <$50 million to >$60 million as UNI bounced from the trendline support. The metric confirms the bullish future market bias over the same period.
In addition, more short positions suffered liquidations, as illustrated by the long red bar graphs on UNI Total Liquidation Chart. It further confirms the bullish bias in the futures market.
