Connect with us
Active Currencies 14723
Market Cap $2,657,295,637,647.74
Bitcoin Share 51.47%
24h Market Cap Change $4.59

Uniswap’s recovery stalls near range lows – Are shorting gains likely?

2min Read

Uniswap’s [UNI] strong recovery could be far from sight unless BTC reverses recent losses.

Uniswap’s recovery stalls near range lows - Are shorting gains 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

  • UNI reclaimed the $5 level at press time. 
  • More long positions wrecked on a 4-hour timeframe at press time. 

The crypto market was ecstatic on 10 May after U.S. inflation eased below 5%. Notably, Uniswap [UNI] fronted a recovery on the same day and traded at $5.143 at press time, way above its lowest of $4.800 on 9 May. 

Is your portfolio green? Check UNI Profit Calculator 

However, the mild uptrend has hit UNI’s previous range lows of $5.2 and could see a sharp drop if the obstacle persists. Meanwhile, Bitcoin [BTC] traded below $27.5k, meaning short-term bearish pressure could escalate in the next few hours/days. 

Bulls can bid at these levels if the $5.2 obstacle persists

Source: UNI/USDT on TradingView

In the past two weeks, UNI consolidated between $5.2 – $5.7. It inflicted a bearish breakout on 8 May but reversed the losses on 10 May. However, the price rejection at the range low of $5.2 could set UNI to retrace to lower support levels again. 

Short sellers could drive down UNI toward the December low of $4.95 or the November low of $4.71. Notably, the range low $5.2 are January 2023 low level, meaning UNI has cleared all gains made in Q1 2023.  

However, a close above $5.2 could give near-term bulls a shot at reversing losses made in the past weeks. However, they will only gain leverage if UNI closes above the consolidation range of $5.2 – $5.7. 

At the time of writing, the RSI (relative strength index) was above the 50-mark, reinforcing that demand improved on 10 May. 

Similarly, the OBV rose slightly on 10 May but exhibited a downtick at press time – the rise and slight drop in volume that could undermine further surge.

Sellers had the upper hand

Source: Coinglass

How much are 1,10,100 UNIs worth today?

According to Coinglass’s exchange long/short ratio, UNI shorts dominated at 51.32% in the 4-hour timeframe. It underscores a short-term bearish outlook that could make the range low of $5.2 a formidable obstacle. 

In addition, more long positions ($4.37k) were wrecked in the past 4-hours, while no short positions suffered any liquidations. It corroborates a likely downtrend for UNI, which could drag it to lower support levels. 

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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.