Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- UNI dropped to the 50% Fib support level after BTC breached $23.86k.
- UNI saw widespread accumulation.
Apart from macroeconomic headwinds, Uniswap [UNI] seems ready for expansion and appreciation. Overall, UNI has appreciated by 50% since January. However, it faced a 10% correction following BTC’s sharp price rejection at $25K.
Read Uniswap’s [UNI] Price Prediction 2023-24
BTC has seen fluctuations in the past few days because of overall market uncertainty. However, the Personal Consumption Expenditure (PCE), set to be released on Friday, Feb. 24, could hint at whether the FOMC meeting in March will be dovish or hawkish. As such, the release could provide a potential price direction.
Can the 50% Fib support level hold?
Source: UNI/USDT on TradingView
The sharp drop from the rising channel (white) was kept in check by $6.234. It allowed bulls to launch an 18% rally before another correction knocked them out of the market.
At press time, the 50% Fib support level of $6.859 has briefly contained the drop. If the support level continues to hold and BTC surges toward $25k, long-term bulls could target 61.8% ($7.039) or 78.6% ($7.295) Fib levels.
Alternatively, sellers could make moves if the 50% Fib level is breached, BTC drops below $23.5k, and the downwsing is confirmed. Bears could benefit from shorting opportunities at 38.2% ($6.680) or 23.6% ($6.457) Fib levels.
The Chaikin Money Flow (CMF) moved sideways above the zero line, indicating that bulls had limited leverage. Moreover, after hitting the mid-level, the RSI exhibited an uptick, showing the market structure was almost neutral; hence, caution should be exercised.
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UNI saw an expansive accumulation phase which could bolster a long-term bullish run
Source: Santiment
As per Santiment, UNI saw network-wide accumulation as shown by the rising 180-day Mean Coin Age. It suggests a potential bullish run for UNI in the long run. Moreover, the weighted sentiment remained positive, indicating investors were bullish on the asset despite the prevailing market rout at press time.
On the other hand, long-term holders have varying benefits from the recent uptrend. In particular, six-month holders saw profits from the recent upswing, as shown by the positive 180-day MVRV. However, the quarterly holders have sustained losses since the end of last month.
Source: https://ambcrypto.com/uniswap-uni-falls-to-key-support-can-50-fib-level-prevail/