On Thursday, the $6.7 price range of Uniswap was rebuffed once again. The momentum has slowed on the shorter time frames, which is a bearish indicator for traders and investors.
It’s possible that the recent decline in Bitcoin’s value is responsible for UNI’s lag.
Statistics show that there is a moderately high relationship between UNI and Bitcoin.
Recent price changes for both coins show a strong correlation between them. UNI has been closely following Bitcoin’s price action.
As the bearish slump in Uniswap continues into its second day, the currency pair may be retracing its recent gains.
As of this writing, UNI is trading at $6.45, up 12% in the last seven days, data from Coingecko show, Friday.
Uniswap Indicator: Bearish
UNI fell to a closing price of $6.379 yesterday, 7.62% lower than its September 28 closing price of $6.555. Price action in the past is also suggestive of a developing bearish momentum.
The momentum indicator is at a bearish low at the moment.
Daily and 4-hourly trends tell the same pattern as well. The amount of UNI currency on hand is at an all-time high, per CryptoQuant statistics. Foreign exchange reserves on the rise portend worse conditions.
As of this writing, daily UNI transaction volume in the shorter time frames from September 27 to now has been volatile.
During this time range on September 27, UNI rallied and tested the $6.7 resistance level. This price trend mirrored that of Bitcoin.
Although demand for UNI is not very great, both BTC and UNI are currently exhibiting indications of recovery.
A Retreat, Or Advance?
A recent research predicted that UNI would decline to $5.50, a volatile region that might spark a bigger sell-off in the crypto.
A decline of this nature could prompt investors and purchasers to acquire a position inside the aforementioned price range, restoring the currency to its current value.
However, UNI’s technological aspects are relatively neutral. On the charts, this appears as a near-stabilization of the price, which is supported by the 38.20 Fibonacci level.
This neutrality of the technical indicators and the relatively stable price range can assist the bulls in gaining strength for a breakout.
However, UNI has struggled to surpass the $6.49 level of resistance.
A breach of this resistance might initiate a gradual rally toward the $6.7 price level.
As the price trend wanes, UNI has a same chance of falling to $5.5 or rising to $6.7.
UNI total market cap at $4.95 billion on the daily chart | Source: TradingView.com
Featured image from Brightnode, Chart: TradingView.com