Uniswap [UNI] stuck at a critical price point: Will it rally or dip?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Uniswap hovered over a key price level with the possibility of a rally or further price dip.
- Rising Mean coin age showed that bulls could not be ruled out just yet.
Uniswap [UNI] hovered over a key support level, as bears extended their dominance of its price action. After ranging between a compact price zone of $4.5 to $4.9 over a two-week period, sellers broke out with a dip to the $4.3 support level.
Read Uniswap’s [UNI] Price Prediction 2023-24
With this support level being key to both bulls and bears, the price action on the lower timeframes could give a pointer to the likely direction for UNI in the short to mid-term.
Bears make the first move
A 7% dip from the $4.6 price zone on 31 August was the catalyst for UNI’s descent to the $4.3 support level. A look southward showed the support level was a critical one for bulls, as it spurred the bullish rally in late June.
Bulls would be looking to the level to have the same effect after sustained selling pressure in mid-August led to an erasure of all of UNI’s July gains.
On the other hand, a bearish capture of this support level would signal the possibility of Uniswap hitting the year-low of $3.6 again.
Both the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) revealed a bearish advantage. The RSI remained just above the oversold zone while the CMF stayed under the zero mark, highlighting the lack of demand and dwindling capital inflows.
Bulls are down but not out
Buyers were encouraged by UNI’s rising mean coin age. Data from Santiment showed that the 90d mean coin age had been on a rapid rise since mid-July. This pointed to an accumulation of Uniswap at cheap prices.
How much are 1,10,100 UNIs worth today?
With the 30d Market Value to Realized Value (MVRV) ratio still in negative territory, UNI could see a bounce from this support level, as bulls try to flip their unrealized losses to profit.