![Uniswap’s [UNI] recovery blocked: Will bulls find footing at key demand zone?](https://statics.ambcrypto.com/wp-content/uploads/2023/04/image-1200x800-34.png)
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- UNI faced price rejection at the descending trendline.
- Bulls could be hopeful if a key demand zone is retested and defended.
Unsiwap’s [UNI] recent recovery attempts have to contend with a few obstacles. Besides Bitcoin [BTC] fluctuating around $28k, UNI has faced price rejection at a month-long descending trendline.
At press time, UNI had dropped to $5.854 support. A breach below it and subsequent retest of the key demand zone could offer bulls new buying opportunities.
Read Uniswap’s [UNI] Price Prediction 2023-24
Will the $5.854 support hold?
Source: UNI/USDT on TradingView
The $5.228 – $5.511 range has been a key support and demand zone in 12-hour and lower timeframe charts. Two previous retests led to recovery, and a repeat of the trend may result in a rebound and discounted buying opportunity.
A breach below $5.854 could attract increased sell pressure. Therefore, UNI may drop to the demand zone of $5.228 – $5.511 before a likely rebound from aggressive buying at these levels. The retest and an uptrend confirmation could offer new buying opportunities with targets at $5.854 and the descending trendline around $6.1.
A close below the support range at $5.235 will invalidate the above thesis. The next likely support in such a downswing scenario will be $4.964.
Meanwhile, the RSI faced rejection at the 60 mark and dropped below its equilibrium – denoting a dip in buying pressure. If confirmed, a pending bearish MA crossover could expose UNI to more sell pressure. Moreover, OBV (On Balance Volume) declined, indicating a drop in demand for UNI in the past few days.
The funding rate was positive and mean age rose
Source: Santiment
How much are 1,10,100 UNIs worth today?
UNI’s funding rate at the time of writing was positive. In addition, it enjoyed a relatively positive standing in the past few days – a bullish signal. Besides, the rising mean coin age shows a wide accumulation of UNI tokens, a sign of a likely rally.
Moreover, the development activity increased and could boost investor confidence. But investors should track BTC before making moves.
