- Uniswap [UNI] witnessed a 15% increase within the past 24 hours, hitting a critical resistance level at $5.41.
- The decrease in supply on exchanges and a lackluster number of active addresses may affect the immediate bullish outlook.
Having reversed its losses from June, Uniswap [UNI] has shown commendable resilience. Over the past 24 hours at the time of writing, it had experienced a 15% surge, reaching a crucial resistance point at $5.41, which might momentarily impede further ascent.
A recent assessment reveals that the incentives of Uniswap on Optimism [OP] have yielded mixed results on liquidity and the DeFi sector. However, from a price perspective, UNI remains robustly bullish, and an additional uptick could be on the horizon if it successfully overcomes this barrier.
Analyzing UNI’s progress from the range low on June 12 to the intersection of the range high and the $5.41 resistance level, UNI has leaped approximately 35% within the past two weeks. When the D1 charts are expanded, the general price activity outlines a descending channel (white). Notable price levels are found beneath the $5.4 resistance zone (cyan) and the supply zone (red) ranging from $6.3 to $6.6.
With the Relative Strength Index (RSI) breaching the overbought zone and capital inflows witnessing an increase (as suggested by the rising Chaikin Money Flow (CMF)), UNI might attempt to surge further. Consequently, UNI could break the $5.4 resistance level and rally towards the supply zone between $6.3 and $6.6, offering a potential 20% rise. However, bulls would first need to clear an additional hurdle at $5.69.
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On the other hand, a rejection at the confluence of the range-high and the resistance level of $5.4 could allow sellers to gain a footing, potentially targeting gains at $4.7 or the range low.
According to data from Santiment, the supply of UNI on exchanges plummeted sharply on June 9 and has moved sideways since mid-June. This decrease suggests short-term selling pressure has eased as the volume of UNI relocated to centralized exchanges for unloading has reduced.
However, the trading volumes as illustrated by active addresses (yellow bars) remain comparatively low to those observed during the June 9 drop. While this could potentially delay a bullish breakout, a bullish Bitcoin could provide an advantage to UNI bulls. Under such circumstances, a pullback retest at $5.4 could open new buying opportunities, aiming for the supply zone around $6.5.
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