Uni price hovering near demand zone

Uniswap price is currently stuck in the consolidation zone on a weekly basis ranging between $5.30 and $7.20 since October 2022. Uniswap started its bullish rally at the beginning of the year 2023 forming a high at $7.61 level. The price n corrected move by falling approximately 30% and creating a low of $5.25. Recently, the price received several rejection from $6.50 price level which resulted in a downfall of price.

UNI price broke out from narrow consolidation

UNI price broke out from narrow consolidation zone but due less sellers volume, price again entered consolidation phase as price reached near demand zone. Uni price has been on a declining journey since april 19. The bulls were able to stall bearish momentum by forming a support $5.2 level and started to rise upwards but did not have enough momentum to break above $5.6 level.

The correlation between uniswap and bitcoin is 0.91 for past 3 months which is high indicating that it follows the rise and fall of bitcoin price. Analysts predict that Uniswap price might fall to $4.71 level which is low formed on november 9 2022 if bitcoin price gets close to $27000. The $4.70 price level has held its price previously and Uni price has bounced up from that level. As price reaches the demand zone, there is a possibility that sellers will become less aggressive and let buyers enter the market on demand zone of $4.90 level.

On condition of increased seller participation for breaching $4.90 level can cause downfall of price to $3.60 level. Recently, Uniswap has reached a new record for number of active users on its platform, suppressing 30 million.

Uniswap Technical analysis:

Uniswap price is currently trading below 20,50,100 and 200-day EMAs indicating bearish momentum in the market. RSI seems to be rising slightly as price forms support at $5.2 level and is currently below the 50 mark. RSI trades at 41.58 indicating the influence of sellers still stays in the market. The chaikin money flow score is -0.05 indicating weakness in the market and has started rising to cross above 0.00 level. UNI price has recently received rejection from 20-day SMA of bollinger and bands have contracted due to price consolidating in a narrow zone. If bulls can push price above $5.65 level, there is a probability that bulls can push price to retest $6.50 level. The longs/shorts ratio is 0.93 with 48.19% longs and 51.89% shorts in the last 24 hours indicating more position of shorts.

Conclusion:

The market structure and price action for Uniswap is bearish but bulls have lowered bearish momentum as price reached the demand zone. The technical parameter shows that Uni price is in an indecisive phase.

Technical levels:

Major support: $5.235 and $4.90.

Major resistance: $5.67 and $6.34.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or or advice. Investing in or trading crypto assets comes with a risk of financial loss.