• Thu. Apr 18th, 2024

Uniswap has seen volatility lately. The $6B market capitalization token soared, then lost approximately 10% on its price charts over the last three days. It seemed to create a range, though short timeframe technical indicators didn’t exhibit a bullish picture regardless of the nearby support level. The buying pressure absence in UNI could have emerged from Bitcoin’s weakness.

Uniswap 1Hr Timeframe

Analysts plotted a near-term range based on Uniswap’s trading within the last few days. The token has respected the support mark at $5.96 within the previous week. Yet, it noted a swift fluctuation to $5.73 before a sharp bounce towards $6.4.

The long-term outlook marked $5.7 – $6 as Uniswap’s demand region. Meanwhile, the short timeframes revealed $6.4 as a supply territory. The range’s mid-point stood at $6.18 and served as resistance and support lately.

Meanwhile, such developments added integrity to the plotted range. Traders might consider buying around the $5.95 – $6 range lows. Nonetheless, they should place a tight stop-loss for bounce expectations. Nevertheless, the 21 and 55-period MAs created a bearish cross and might serve as resistance amid higher price actions.

Reasoning

The RSI (Relative Strength Index) dropped under the 50-neutral, showing hourly chart momentum fluctuating to bearishness. Furthermore, the indicator has formed multiple lower lows within the past few days. That confirmed amplified bearish strength. Hence, a move to $5.95 was possible. Still, it remained uncles whether Uniswap token would plunge further.

The OBV (on-balance volume) climbed within the last few days. Unlike the Relative Strength Index, the OBV formed higher lows. That indicated massive buying momentum plus a substantial selling momentum absence. Thus, purchasing the dip to $5.95 – $6 might ensure profits, as a possible move to $6.4 might emerge amidst massive demand.

Final Thought

Bitcoin wavered at a critical support zone during this publication, whereas lower timeframe charts remained tricky and volatile. Risk-averse investors should wait for decisive situations. Meanwhile, risk-loving market players might consider longing at $5.95 – $6, with a stop loss beneath $5.9. Moreover, present market sentiment support downsides in the altcoin. Bears remained in the front seat during this publication.

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