Connect with us
Active Currencies 10198
Market Cap $1,203,817,308,633.50
Bitcoin Share 44.60%
24h Market Cap Change $0.79

Uniswap [UNI] forms a bearish pattern – Is reversal likely?

2min Read
Uniswap [UNI] forms a bearish pattern - Is reversal likely?

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Collection of top AI tools to use for different tasks.


  • UNI formed a bearish rising wedge pattern. 
  • Open interest rates stagnated, and the long/short ratio favored bears at press time.

Uniswap [UNI] enjoyed a double boost last week. Firstly, the increased traction for DeFi systems after the U.S. bank run made it one of the benefactors. Secondly, Bitcoin’s [BTC] rally tipped UNI for an extra spike.

Read Uniswap [UNI] Price Prediction 2022-23

At press time, BTC maintained the $27K zone, showing bulls were adamant and not exiting their positions – a bullish sentiment that could push it higher or become a bull trap if next week’s (March 21/22) Fed meeting ends up in a blood run. 

A consolidation, price dump, or rally for UNI?

Source: UNI/USDT on TradingView

UNI dropped from $7.6 to $5.2 before aggressive buying pushed it into recovery. However, the DEX token curved a rising wedge pattern – a typical bearish formation highly associated with reversals. If the conventional wisdom holds, UNI could witness a sharp retracement, especially if BTC drops below the $27K zone. 

Bears could wait for a break below the pattern before making moves. The target would be the height of the rising wedge (18%). In addition, other crucial supports like 23.6% Fib level ($5.8) and $5.24 must be cleared for bears to gain leverage.

A close above the wedge pattern and 61.8% Fib level ($6.713) could push UNI to $7.114 or $7.63, especially if BTC remains bullish. 

The Relative Strength Index (RSI) moved sideways but in the upper range, showing buying pressure stagnated amidst increased selling pressure.

The OBV (On Balance Volume) recovered, showing trading volumes increased, boosting the uptrend witnessed in the past few days. 

Open interest rate stagnates

Source: Coinglass

According to Coinglass, UNI’s open interest (OI) rate slowed and stagnated after a sharp increase on 17 March. It shows money flowing into and out of UNI’s futures market remained the same – a neutral position that neither gives bulls nor sellers leverage. 

Is your portfolio green? Check out UNI Profit Calculato

But the long/short ratio showed bears had considerable leverage on the higher timeframe. It means more investors were bearish on UNI’s long-term prospects – a position that could weigh on the recovery and tip bears to break below the rising wedge pattern.

Source: Coinglass


Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.