Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- UNI’s price action underlined a bullish bias as prices surged above $6 again.
- There was some selling pressure last week, but it wasn’t enough to beat the buyers.
On July 17, Uniswap [UNI] announced that it was improving its on-chain trading with an upgraded protocol. The goal was to expand the business beyond Ethereum [ETH] network, with other popular chains already within sight. Still, the report also pointed to a drop in active users.
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This could be a sign that demand for the token could fall in the coming weeks. Technical analysis showed that UNI remained bullish. The adventure above USD 6 underlined the bullish intent, with the next major resistance at USD 6.5. Bitcoin [BTC] should have neutral or bullish momentum otherwise it could affect sentiment in the market.
The $5.8 turned convincingly to support, but bulls have yet to capture the $6 region
![Uniswap [UNI] is on an uptrend as bulls target the $6.5 level](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-2-UNI-price.png)
Source: UNI/USDT on TradingView
UNI’s market structure on the H4 chart was bullish after moving above $5.36 on July 13. The most recent higher low was $5.81, which coincided with a higher level of significance over time. The $5.8-$5.9 region served as support in March and April 2023. This zone appears to have flipped back to support again.
This meant that bulls were free to drive up prices, although a period of consolidation was possible. The $6 level was also important psychologically, aside from its proximity to $5.8 making it more difficult for bulls to break through.
The DMI agreed with UNI’s price action findings and showed a strong uptrend with both the +DI (green) and ADX (yellow) above the 20 reading. However, the CMF showed no significant capital flow to the market.
How much is 1, 10 or 100 UNI worth today?
Uniswap’s funding rate has dropped in the past few hours. Does this signal the beginning of a shift in sentiment?
![Uniswap [UNI] is on an uptrend as bulls target the $6.5 level](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-2-UNI-coinalyze.png)
Source: Coin analysis
It has been difficult for buyers to overcome resistance over the past week, and one reason could be the selling pressure that has taken over. Since July 18, the spot CVD recorded a negative slope that leveled off on July 22, indicating increased selling pressure last week.
More recently, the Open Interest saw a sharp drop on July 22 as UNI prices dropped from $6.2 to $5,955. This was not conclusive evidence for a move towards USD 5.8, but pointed to near-term bearishness.