Journalist
Posted:
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- UNI maintains a bearish structure on the one-day time frame
- A rejection from a local high could be on the cards
Uniswap [UNI] was recently in the news after a research firm concluded that liquidity on Uniswap V3 could reach $1 trillion. Another report highlighted Uniswap’s growth as a high-volume DEX, strengthening the position of long-term UNI investors.
How much is 1, 10 or 100 UNI worth today?
UNI prices have been on a downward trend over the past month. A retest of a support zone on a higher time frame provided a notable rebound for UNI, but this does not break the trend. Sentiment in the lower time frame started to shift.
Uniswap is in a downtrend, but a structural break could be close
Source: UNI/USDT on TradingView
Despite the strong recovery over the past week, the Relative Strength Index (RSI) on the one-day chart remained below neutral 50. However, that could change as the indicator stood at 46 at the time of writing. In addition to the trend, Uniswap’s market structure was also bearish. The recent lower high at $4.53 needs to be beaten for this bias to turn bullish.
Yet trading volume has been declining since August. On-Balance Volume (OBV) was also indifferent to the recent rally and failed to break the local highs of the past three weeks. Unless this changes, the idea of a strong UNI rally would be questionable.
A move to the $4.5-$4.6 region would provide a low-risk short position. However, if UNI can surface and retest the same as support, swing traders can try to buy the token. To the north, the resistance levels at $4.87 and $5.2 could be the take-profit targets.
Short-term market sentiment is already bullish
Source: Coinalyse
After September 11, UNI’s increase on the price front was accompanied by an increase in Open Interest. This indicated an optimistic belief and bidders in the futures market expected further gains. It was supplemented by a small increase locally in CVD.
Source: Mob graph
The order books recorded a significant amount of liquidity at $4.5 and $4.8, both of which were also recent lower highs. It was possible that UNI prices would tap into these liquidity pockets before a bearish reversal.
Realistic or not, here is UNI’s market cap in BTC terms
Overall, while Uniswap posted impressive gains this past week, it remained likely that the downward trend on the daily time frame would continue. A Bitcoin [BTC] A rally above $28,000 could fuel bullish hopes for UNI.