Uniswap: Evaluating Whether UNI Bulls Can Initiate an Uptick Before This Drop

  • Uniswap secured rebounding grounds amidst the battle to avoid stretched bearish pennant losses.
  • The token’s Open Interest confirmed mixed signals within the previous day.

Uniswap’s recent reversal incorporated a bearish drag beneath the trend-line resistance. Consequently, sellers welcomed the red candlesticks spree as the alternative token printed a continuation setup. UNI regained support at $5.6 as it exhibited rebounding tendencies during this publication.

Buyers’ continued efforts to protect the nearest support might initiate a compression phase for UNI in the upcoming sessions. While publishing this blog, UNI changed hands near $5.5, dropping 3.94% in the past 24 hours.

Can Bulls Reverse the Patterned Breakdown Rally? When?

Uniswap’s longer-term trend-line resistance catalyzed a decisive bearish move within the past three months. Though the token saw a climbing wedge rally past this barrier recently, sellers dragged UNI beneath the hurdle within no time, confirming their amplified edge.

Meanwhile, the drop printed a bearish pennant on the 4hr chart. The emerged breakdown triggered a more than 10% retracement as bulls battled to reject low prices around its somewhat high liquidity territory at $5.2 – $5.5.

Buyers extending their commitment to halting the bleeding by erasing the red candles spree might see the alt targeting to initiate an uptick towards the trend-line obstacle from the high liquidity range. A closing beyond $6.15 might see buyers stretching the rally to the 50-200 Exponential Moving Average.

Nevertheless, reversals from UNI’s trend-line resistance might amplify the bearish tendencies in the upcoming sessions. The RSI (Relative Strength Index) maintained its move within the bearish region following its failure to break beyond the equilibrium amidst its latest rally.

Furthermore, the –DI retained its level beyond the +DI along a somewhat steady directional trend (ADX)

Open Interest Outlook

Coinglass data shows Uniswap recorded more than a 10% uptick in Futures Open Interest in all exchanges. That uptick saw plummeting 24hr prices. Such developments often show market players opening new shot positions. Meanwhile, bullish reversals might emerge after the shorts start to cover.

Lastly, UNI enthusiasts should evaluate on-chain and broad market sentiment to make profitable bets. Also, buyers should watch Bitcoin as UNI boasts an 85% market correlation with Bitcoin.

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