Uniswap: Will this price hurdle end UNI’s bullish streak
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Uniswap encountered a familiar price roadblock, stalling its upward momentum.
- On-chain metrics hinted at increased selling pressure in the short term.
Uniswap [UNI] has been on a mazy bullish run, since mid-June. It has consistently flipped resistance levels to support, as price continued to make a series of higher lows.
Read Uniswap’s [UNI] Price Prediction 2023-2024
Despite the recent market downturn occasioned by Bitcoin [BTC] dipping to $29k, Uniswap has maintained its uptrend. However, a critical price level stands in the way of bulls. Will this level usher in bears again or can bulls clear this obstacle?
UNI’s bullish rally hits a familiar obstacle
After breaking the lower low in early July and flipping Uniswap bullish on the 12-hour timeframe, buyers registered 35% gains to reinforce the bullish momentum. This saw UNI completely reverse all its May and June losses.
Regardless of the strong bullish momentum, a key price level has presented a significant hurdle for buyers. A look southward showed that $6.37 resistance level ushered in bearish momentum in mid-April.
The first bullish attempt to take the level on 21 July was unsuccessful with bulls having to regroup at the nearby support level of $5.72. A re-attempt on 30 July brought success, although short-lived. A look at the on-chart indicators suggested strong selling pressure lay for Uniswap at the $6.37 level.
The Relative Strength Index (RSI) experienced a sharp drop from the overbought level to neutral 50 over a 24-hour period. The Moving Average Convergence Divergence (MACD) responded with a bearish crossover, even though the Moving Averages stayed above the zero mark.
A continuation of the sharp price drop could see bulls attempt to rebound from the $5.72 support level. However, if the selling pressure breaks below the support level, it would invalidate the bullish rebound thesis from the support level.
How much are 1,10,100 UNIs worth today?
Spike in exchange inflow could accelerate UNI price dip
The sharp rise in exchange inflow hinted at increased selling pressure for Uniswap. Per Santiment, the spike in inflows to exchanges on 2 Aug reflected on the significant price drop within the same period.
Similarly, the 7d Market Value to Realized Value (MVRV) ratio saw a sharp decline. This hinted at profit-taking moves by market speculators. Together, they signaled an increase in the short-term selling pressure.