Uniswap: Sellers extend control, is a new low likely for UNI?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bearish structure saw sellers retain control of UNI’s price action.
- Longs were massively hurt by consistent losses in the futures market.
Sellers extended the bearish control on Uniswap’s [UNI] price chart. This was despite the bullish attempt to quickly rally after a bearish break below the $4.3 support level. However, the bullish rebound was swiftly curtailed on a re-test of the new resistance level.
Read Uniswap’s [UNI] Price Prediction 2023-24
Meanwhile, Bitcoin’s [BTC] dip from the $27k price level continued with the king coin trading at $26.6k, as of press time.
Series of lower highs saw UNI fall below the critical support level
The Relative Strength Index (RSI) extended movement under the neutral 50 was evidence of the long-term selling pressure on Uniswap. In addition, the Chaikin Money Flow (CMF) attempted to climb above the zero mark but was unsuccessful, due to little capital inflows.
These indicators strengthened the bearish conviction in the market. The daily timeframe price action revealed a 4.1% price drop over the past two days, as sellers exerted their control over any form of buying momentum.
With the On Balance Volume (OBV) mirroring the price movements with a series of lower highs, shorts could target profits at $3.8 to $4.
However, a daily candle close above $4.3 would invalidate further gains for shorts and could see a bullish rebound to the $4.7 – $5 price zone.
Longs bled massively in the futures market
A look at Uniswap’s liquidation data showed that longs were constantly being wrecked massively. Over the past week, longs suffered a 90% – 100% share of the entire losses.
How much are 1,10,100 UNIs worth today?
This underscored the strong bearish upper hand in the market. Thus, making it difficult for bulls to rally under the present market conditions.