- UNI’s recent bullish trend showed potential support as many addresses made gains.
- Whale activity and the prevalence of mains surges suggested the potential for bull traps.
Uniswaps [UNI] The price action has turned bullish recently, sparking discussions about the longevity of this uptrend, especially as the bulls have pulled several bull traps since the start of the year.
Let’s take a look at these.
Given the recent bullish trend in UNI’s price, the current structure shows a potential support level as many addresses are taking profits.
Source: IntoTheBlock
However, the presence of a significant portion of the money’s holders could also mean resistance from above. These investors might consider exiting the market at breakeven points, especially if they have been caught in previous bull traps.
The current bullish trend may be subject to reversals if whale owners decide to take profits, which could lead to sudden price drops.
The dominance of whales suggested the market was heavily influenced by the actions of a few at the time of going to press, which could lead to volatility.
Source: IntoTheBlock
The spikes in net flows could indicate bull traps, where sudden price increases tempt retail investors to buy, after which the whales sell off their holdings, causing the price to collapse.
Source: IntoTheBlock
Uniswap’s trading patterns
The 200 period MA seemed to act as a dynamic resistance level. Also, UNI has tested and pulled back from this level several times, suggesting that sustaining gains above this MA could be difficult in the near term.
The widening of the Bollinger Bands around the center of the chart indicated increased volatility. However, the return to narrower bands indicated stabilization.
Source: TradingView
Also, UNI saw a double top (a bearish reversal pattern) around the price of $10.15, indicating a possible downturn.
The double bottom (bullish reversal pattern) suggested strong support levels that the price tested twice without moving lower. It is identified around the $9.85 level, indicating great potential for the pattern.
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The frequent change in direction indicated by the HH, HL, LH and LL marks, along with the proximity of double top and double bottom patterns, signifies high intraday volatility.
This is typical of markets affected by news or significant trading activity.