Uniswap [UNI] buyers must identify these signs of reversal before going long

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice.

  • Uniswap bears re-entered the mar­ket while the cryp­to grav­i­tat­ed below its EMA ribbons.
  • The crypto’s fund­ing rates wit­nessed a slight improve­ment over the last few days.

Fol­low­ing its lat­est bear­ish pull, Uniswap [UNI] slipped below its EMA rib­bons while reveal­ing a height­ened sell­ing edge. The sell­ers renewed their pres­sure and pro­pelled a streak of red can­dles as the alt reversed from the dai­ly 200 EMA (green).


Read Uniswap’s price pre­dic­tion 2023–24


If the sell­ers insist on pro­tect­ing the $6.4 resis­tance, UNI could see a near-term pull­back before any bull­ish rebut­tal. At press time, UNI was trad­ing at $6.07.

UNI saw a bearish pull from its long-term trendline resistance

Source: Trad­ingView, UNI/USDT

UNI’s long-term trend­line resis­tance his­tor­i­cal­ly pro­pelled bear­ish pulls over the last 11 months. Con­se­quent­ly, the recent rebound from this lev­el near the 200 EMA induced a sol­id pulldown. 

The altcoin’s extend­ed bear­ish run found sup­port around $4.8 sup­port. While the buy­ers exhib­it­ed their inten­tions to pre­vent any fur­ther dam­age, UNI crawled back toward its EMA ribbons.

Mean­while, UNI saw a bear­ish crossover on its EMA rib­bons while form­ing a bear­ish pen­nant-like struc­ture. A con­vinc­ing close below the cur­rent pat­tern could height­en the ongo­ing bear­ish pres­sure in the com­ing sessions. 

In this case, the sell­ers would look to test the $5.2-$5.4 range. Any result­ing revival can bring forth buy­ing oppor­tu­ni­ties. Any close above the EMA rib­bons could posi­tion UNI for a retest of its long-trend­line resis­tance in the com­ing time.

The Rel­a­tive Strength Index (RSI) con­tin­ued its sway in the bear­ish zone while depict­ing slight ease in sell­ing pres­sure. Any rever­sals from the mid­line would rein­force the bear­ish edge. More­over, the Chaikin Mon­ey Flow (CMF) hov­ered near the mid­line to depict a neu­tral position.

Improved fund­ing rates

Source: Coin­glass

An analy­sis of the fund­ing rates revealed a rel­a­tive­ly favor­able posi­tion for the buy­ers. UNI’s fund­ing rates across all exchanges marked an uptrend over the last few days.

As a result, these rates hov­ered in the pos­i­tive zone over the last day after this upturn. The buy­ers could keep an eye out for a poten­tial change of trend on this front to gauge the sen­ti­ment in the futures mar­ket. Final­ly, over­all mar­ket sen­ti­ment and on-chain analy­sis would be vital for mak­ing a prof­itable bet.

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