Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- UNI’s retracement has reached a crucial bullish zone
- Sell signals were strong according to liquidation data
from Uniswap [UNI] could present a risky buying opportunity on the higher time frames. Bulls faltered after climbing above the June high to hit $5.8. However, the pullback has softened to a crucial confluence area of a bullish order block and a May support area – which could provide a return position for bulls like BTC maintains over $30k.
How many Worth 1,10,100 UNIs today?
At the time of writing, the price of BTC was $30.18k and has been showing sell signals for the past few days amid the fading ETF-induced hype that saw it hit new highs in Q2/Q3 2023.
Will this bullish zone save bulls?
Source: UNI/USDT on TradingView
At the height of UNI’s rally in late June, the bulls cooled, causing UNI to retreat to May’s support near $4.95. The pullback featured a bullish order block of $4.75 – $5.1 (Cyan), turning the May support into a bullish stronghold.
A positive price reaction in the bullish zone, especially if BTC fails to drop below $30k, could provide a buying opportunity targeting the recent high of $5.8. However, cautious traders might want to set $5.5 as their primary target, with both setups offering >2 RR (Risk Reward).
A drop below the bullish zone will invalidate the above bullish statement. A crack in this zone could expose UNI to further devaluation to $4.5 or $4.0.
Meanwhile, the Relative Strength Index (RSI) fell below the neutral level of 50; indicates reduced buying pressure. Similarly, the Chaikin Money Flow (CMF) moved south, reinforcing a decline in capital inflows.
More long positions are not recommended
Source: Coinglass
Is your wallet green? look at the Uniswap profit calculator
UNI lost more long positions on July 10, according to Coinglass liquidation data. For example, during the same period, more than $170,000 in long positions were liquidated against less than $10 in short positions.
The trend reinforces bearish sentiment and calls for caution from bulls. Investors should follow BTC’s price action for more clarity and direction.