Connect with us
Active Currencies 14794
Market Cap $2,467,692,571,200.00
Bitcoin Share 51.25%
24h Market Cap Change $-0.87

Uniswap trading at a long term demand zone- Where can sellers benefit

2min Read
Uniswap trading at a long term demand zone, but bulls have an uphill battle

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Data on DeFi Pulse showed decentralized exchange Uniswap to have a Total Locked Value of $7.04 billion, making it the fifth-largest decentralized protocol by TVL.

Metrics revealed more than a thousand GitHub submissions, but at the same time, its social presence has been diminishing. This was according to metrics like social volume, from Santiment.

On the charts, the price has been on a steady decline since last November. Recovery did not look likely at the time of writing.

UNI- 1 Day Chart

Uniswap trading at a long term demand zone, but bulls have an uphill battle

Source: UNI/USDT on TradingView

On the charts, UNI had a grim outlook, especially on the larger timeframes such as the daily. The persistent downtrend was reinforced in late March when a rally from the $8.24 support failed to climb close a daily session above the $12 mark. Like the rest of the crypto market, UNI has seen a steady bleed in its price since the beginning of April.

However, it slipped beneath the $8.24 level, and going forward, the $8-$9 area is likely to offer strong resistance to any bullish move.

Therefore, trading with the trend is the best option, and a rejection could materialize in the $8-$9 area in the next few days.

Rationale

Uniswap trading at a long term demand zone, but bulls have an uphill battle

Source: UNI/USDT on TradingView

The RSI has been below neutral 50 since late October, with brief forays above the line. This was suggestive of a steady downtrend, except for a period of two weeks in the latter half of March.

Both the MACD and the RSI showed bearish momentum had the upper hand, although the MACD could signal a pullback with a bullish crossover beneath the zero line. Such a pullback on the downtrend could see UNI retest the $8 area of resistance.

The OBV saw a decent bounce since March, but going back further, the downtrend seems to be strong evidence of seller strength. The OBV has also steadily declined in April, and this trend downward could continue.

Conclusion

The price could revisit the $8-$9 resistance zone in the days to come. Short positions can be opened, as they align with the longer-term trend. Unless the Uniswap token can push past $10, the market structure on the daily timeframe would remain bearish.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.