- The bears took over as UNI fell below key support levels and the long-term EMAs.
- Crypto derivatives data showed a bearish lead with slight hope for buyers.
After the recent market crash, Uniswap [UNI] Like its peers, it fell below key support levels, while at the time of writing it fell towards a relatively low liquidity zone.
Can the bulls intervene to stop the immediate bleeding? The Crypto & Fear and Greed index plummeted, showing a strong bearish lead on the market.
If the sellers continue to defend the resistance at $5.7, UNI could see near-term volatility before witnessing a bullish rebuttal. UNI was trading at $5.2 at the time of writing, down more than 31% in the past week.
UNI spotted a line of red candles amid the market chaos
Source: TradingView, UNI/USDT
The altcoin’s extended bullish run saw a reversal from the $13 support in early April this year. Since then, despite the downtrend, UNI has found support near the 9-month trendline resistance (white, then support).
However, recent market uncertainty has created huge bearish waves in the stock and crypto markets. As a result, UNI witnessed a steep downtrend on the daily charts, falling to a nine-month low on August 5.
Uniswap also experienced a bearish crossover, with the 20- and 50-day EMAs falling below the 200-day EMAs. In the meantime, the price action was in a relatively low liquidity zone according to the VPVP indicator.
So, UNI is likely to see high volatility in the coming days. Should market conditions improve, buyers will look to retest the VPVR’s Point of Control (POC, red) level around $6. However, UNI could struggle to cross this level without a one-sided bullish edge.
On the other hand, a likely bearish upside in the market could pull UNI down towards the $3.9-$4.2 support range in the coming sessions.
The MACD continued its downtrend after witnessing a bearish cross below equilibrium. Buyers should wait for a bullish crossover between these lines as this would indicate a decrease in selling pressure in the near term.
Open interest declined
Source: Coinglass
According to Coinglass data, an analysis of financing rates showed a strong lead for sellers.
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The decrease in open interest alongside the increased volume suggests that many traders are closing their positions due to market volatility and profit taking.
Despite the overall market downtrend, the long/short ratios on Binance and OKX are showing strong bullish sentiment, especially among top traders.
