Uniswap tanks as bears take control

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The market structure and momentum of UNI were bearish.
• A bounce from the range lows was underway but bears had the upper hand.

Uniswap [UNI] saw a surge in network growth on 21 July. The token’s price reached the $6.2 zone but the sellers forced losses thereafter. Nevertheless, the higher timeframe charts have a bullish outlook.

Read Uniswap’s [UNI] Price Prediction 2023-24

This bullishness was tempered by the multiple retests of the $5.7 support, which suggested that bulls might be weakening. On the lower timeframe charts, UNI had a bearish bias from the price action.

Uniswap was at a resistance zone above $5.8 and the bulls might not push higher

Source: UNI/USDT on TradingView

The Visible Range Volume Profile showed the formation of a range between $5.7 and $6.23 that Uniswap has traded within since 14 July. The range was bounded by the Value Area Low and High (blue), with the Point of Control (red) at $5.87. This level was not the mid-range mark.

UNI has a bearish price structure after moving below the $5.95 mark (orange). It fell below the $5.83 support on 24 July. Over the past 24 hours, there was a minor bounce from the $5.7 level. At the time of writing, UNI was trading at $5.843.

The RSI was below neutral 50 but was rising as the prices bounced higher. The CMF was also below -0.05 to indicate significant capital flow out of the market since 24 July. The DMI showed no strong trend in progress, reinforcing the idea of a range formation.

How much are 1, 10, or 100 UNI worth today?

Coinalyze highlighted strong bearish sentiment on 24 July but are the bears losing strength?

Source: Coinalyze

The spot CVD saw sharp declines on 18 July and 24 July. This corresponded with Uniswap prices facing rejection from the $6.2 resistance, close to the range highs. The Open Interest also plunged on those dates.

Over the past three days, the Open Interest has slid lower. The recent bounce from $5.7 saw a minuscule positive reaction on the OI, and none from the spot CVD. This showed that bears remained strong thus far.