On Thursday, Uniswap’s $6.7 price range was again rejected. Momentum has slowed over the shorter timeframes, which is a bearish indicator for traders and investors.
It is possible that Bitcoin’s recent fall in value is responsible for UNI’s delay.
Statistics show that there is a moderately high relationship between UNI and Bitcoin.
Recent price changes for both coins show a strong correlation between them. UNI has been closely following Bitcoin’s price action.
As Uniswap’s bearish plunge continues into the second day, the currency pair could erase recent gains.
As of this writing, UNI is trading at $6.45, up 12% over the past seven days, Friday’s data from Coingecko showed.
Uniswap indicator: Bearish
UNI fell to a close of $6.379 yesterday, down 7.62% from the September 28 close of $6.555. Historical price action also suggests developing bearish momentum.
The momentum indicator is currently at a bearish low.
Daily and 4-hour trends also show the same pattern. The available amount of UNI currency is at an all-time high according to CryptoQuant statistics. Rising FX reserves point to worsening conditions.
As of this writing, daily UNI transaction volume has been volatile over the shorter periods from September 27th to present.
During this period, UNI rallied on September 27th and tested the $6.7 resistance level. This price action mirrored that of Bitcoin.
Although the demand for UNI is not huge, both BTC and UNI are currently showing signs of recovery.
retreat or progress?
A recent study predicted that UNI would fall to $5.50, a volatile region that could trigger a larger crypto sell-off.
Such a decline could prompt investors and buyers to take a position within the above price range and bring the currency back to its current value.
However, the technological aspects of UNI are relatively neutral. On the charts, this appears as a near stabilization in price, supported by the 38.20 Fibonacci level.
This neutrality in technical indicators and relatively stable price range can help the bulls gather strength for a breakout.
However, UNI is struggling to surpass the $6.49 resistance level.
A break of this resistance could start a gradual recovery towards the $6.7 price level.
If the price trend dies down, UNI has an equal chance of falling to $5.5 or rising to $6.7.
UNI Total Market Cap at $4.95B on the Daily Chart | Source: TradingView.com Featured Image by Brightnode, Chart: TradingView.com
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