Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Uniswap There was a merciless downtrend as bears tried to push prices below $ 8.22, revealing a lack of demand. The bearish trend relied on two levels at the time of the press. The exchange is one of the largest decentralized exchanges, but its tokens have been tough on the charts in recent months.
UNI-3 day chart
A three-day chart was adopted to understand the seriousness of the downtrend that UNI continues. The coin hit a high at $ 45 in May, but hasn’t been able to post a higher high since then. Moreover, following the August rebound, token prices began to fall again on the charts. The $ 30 level rejected the breach.
Over the past few months, prices have continued to record a series of lows and lows that are characteristic of the downtrend.
The Fibonacci expansion level (yellow) is plotted based on the UNI’s move from $ 31.41 to $ 13.18, moving south a 27.2% expansion of this move at $ 8.22. By the way, $ 8.2 is where some demand was seen last month.
That said, the bounce couldn’t exceed $ 13, and the market structure remained bearish.
The rationale
Source: TradingView UNI / USDT
The three-day RSI has been below the Neutral 50 line since late October. It tried to turn its nose up, but couldn’t because the price was rejected at $ 12.49. Chaikin’s money flow also fell below the -0.05 mark, showing strong selling pressure.
OBV has seen a sharp recovery in the past month, but even OBV has been on a downward trend for nearly a year.
Conclusion
For bulls, Uniswap will need to move above $ 13 to break through the bearish market structure. Bears, meanwhile, are aiming to bring prices back below the psychological $ 10 level and similarly push them below $ 8.2.
