- Uniswap printed a bearish reversal setup.
- 4hr session close beneath support would see buyers suffering.
Uniswap has welcomed impressive performance over the recent weeks. The alternative token gained approximately 26% from its late September lows to the previous day’s swing high. Meanwhile, such actions saw the coin forming a bearish reversal setup, despite the alt’s bullish momentum.
Nevertheless, this might change in the coming few days. Bitcoin failed to surge past $20.4K again. A BTC move beneath $19K might see accelerated losses within the altcoin market. Meanwhile, Uniswap has two crucial zones that near-term bulls can watch.
A Climbing Wedge Emerges, Losses Might Be Impending
The 4hr chart showed a climbing wedge setup. The last few days saw UNI defending the support market at $6.75. Nevertheless, the alt seemed prepared to drop below the foothold during this publication. The pattern’s lower trend line support and the $6.75 horizontal footing might break in the upcoming hours.
While writing this blog, the Relative Strength Index stood at 48.46. a decline beneath 45 in the coming hours would flip momentum to favor sellers. Also, the Stochastic Relative Strength Index hovered at the oversold region.
Losing the support level at $6.75 would likely push the altcoin lower, whereas a move beneath $6.47 might trigger a bearish case. The value area at $6.6 might act as a reversal zone, translating to more UNI losses. That would push the digital coin toward the $6 – $6.2 range.
Meanwhile, the value area at $6.5 – $6.6 has represented a substantial zone on the lower charts. If BTC defends $19K in the coming few hours to trigger reversals, UNI might rebound from $6.6.
Funding Rates Veers Toward Neutral
CoinGlass’ Short/Long ratio revealed a brief seller advantage within the futures market. Assessing the funding rate metric indicated that UNI retained bullishness over the past day as it exhibited a positive funding rate.
Nevertheless, this narrative has shifted over the last few hours as market players in lower charts shifted their sentiment to bearish. A decline beneath $6.6 might trigger a dip to $6.2, especially amidst an extended BTC downturn.
A 4hr session close beneath $6.47 would change the market structure to bearish. Market players can watch for short entries around $6.5 – $6.6. Meanwhile, a climb past $7 plus a retest of the same as support might welcome a ‘buy’ opportunity.