Uniswap tanks as bears take control
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure and momentum of UNI were bearish.
- A bounce from the range lows was underway but bears had the upper hand.
Uniswap [UNI] saw a surge in network growth on 21 July. The token’s price reached the $6.2 zone but the sellers forced losses thereafter. Nevertheless, the higher timeframe charts have a bullish outlook.
Read Uniswap’s [UNI] Price Prediction 2023-24
This bullishness was tempered by the multiple retests of the $5.7 support, which suggested that bulls might be weakening. On the lower timeframe charts, UNI had a bearish bias from the price action.
Uniswap was at a resistance zone above $5.8 and the bulls might not push higherThe Visible Range Volume Profile showed the formation of a range between $5.7 and $6.23 that Uniswap has traded within since 14 July. The range was bounded by the Value Area Low and High (blue), with the Point of Control (red) at $5.87. This level was not the mid-range mark.
UNI has a bearish price structure after moving below the $5.95 mark (orange). It fell below the $5.83 support on 24 July. Over the past 24 hours, there was a minor bounce from the $5.7 level. At the time of writing, UNI was trading at $5.843.
The RSI was below neutral 50 but was rising as the prices bounced higher. The CMF was also below -0.05 to indicate significant capital flow out of the market since 24 July. The DMI showed no strong trend in progress, reinforcing the idea of a range formation.
How much are 1, 10, or 100 UNI worth today?
Coinalyze highlighted strong bearish sentiment on 24 July but are the bears losing strength?The spot CVD saw sharp declines on 18 July and 24 July. This corresponded with Uniswap prices facing rejection from the $6.2 resistance, close to the range highs. The Open Interest also plunged on those dates.
Over the past three days, the Open Interest has slid lower. The recent bounce from $5.7 saw a minuscule positive reaction on the OI, and none from the spot CVD. This showed that bears remained strong thus far.