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Uniswap shows possibility of a bearish scenario if it loses this level

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Uniswap shows possibility of a bearish scenario if it loses this support level
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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

  • Uniswap forms a bearish reversal pattern
  • 4-hour session close below support bodes ill for buyers

Uniswap has performed well in the markets in recent weeks. It posted gains of nearly 26%, measured from the lows in late September to the swing high it made the previous day.

In doing so, it formed a bearish reversal pattern, even though it retained bullish momentum. This could change over the next few days.


Here’s AMBCrypto’s Price Prediction for Uniswap [UNI] in 2022


Bitcoin was unable to climb above $20.4k yet again. If BTC fell below $19k, it could accelerate the losses for altcoins across the market. There were two important levels that short-term Uniswap bulls would have their eyes on.

A rising wedge spotted, losses could be imminent

Uniswap shows possibility of a bearish scenario if it loses this support level

Source: UNI/USDT on TradingView

On the 4-hour chart, a rising wedge pattern (white) was spotted. In the past few days, UNI had managed to hold on to the $6.75 support level.

However, at the time of writing, it looked set to slip below. The wedge’s lower trendline support as well as the horizontal support at $6.75 could be broken in the coming hours.

The RSI stood at 48.46 at press time. If it dropped below 45 in the next few hours, the indication would be a flip in momentum in favor of the sellers. The Stochastic RSI was at oversold territory as well.

In the event that the $6.75 was lost as support, a bearish scenario can develop if the price further fell below the $6.47 level. This would flip the 4-hour structure to bearish. The highlighted region around $6.6 could serve as a resistance zone and facilitate a drop for UNI as far south as $6-$6.2.

On the other hand, the $6.5-$6.6 has been a significant level on lower timeframes. If Bitcoin can defend the $19k region over the next few hours and begin to reverse, UNI could see a bounce from $6.6 as well.

Funding rate swerves toward neutral

Uniswap shows possibility of a bearish scenario if it loses this support level

Source: Coinglass

The Long/Short ratio on Coinglass showed a very slight advantage to the sellers on the futures market. A look into the funding rate page showed that Uniswap has been bullish in the past 24 hours as it had a positive funding rate.

However, this fact has changed in the past few hours as the lower timeframe market participants flipped their bias to bearish.

A move below $6.6 could spark a fall to $6.2, especially if Bitcoin continued to fall.

A 4-hour session close below $6.47 would flip the structure to bearish. Traders can look for short entries near $6.5-$6.6. Alternatively, a surge back above $7 and its subsequent retest as support could offer a buying opportunity.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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