Jonathan Morgan
Independent Analyst
- Uniswap reeled from solid selling pressure after Thursday US CPI data.
- Bulls test the final support level that could trigger a rally or a sell-off.
- Oscillators show bullish momentum may be returning.
Uniswap price closed Thursday with a nearly 8% loss. However, it remains higher by a considerable amount from the January 2022 low at $9.55.
Uniswap price tests the Tenkan-Sen as its final support level – make or break conditions now present for UNI
Uniswap price has spent the Friday session trading in a tight range above and below the Tenkan-Sen at $11.44. The Tenkan-Sen is the final Ichimoku support level on the daily chart currently keeping UNI afloat. In addition, the 2022 Volume Point Of Control sits just below the Tenkan-Sen at $11.20, further enhancing this support zone.
If bulls manage to keep Uniswap above the Tenkan-Sen, then the next resistance zone to tackle is the prior 100% Fibonacci expansion at $12.68. $12.68 is also the cutoff point in the volume profile, where it goes from thick to thin. Minimal volume has been traded between $12.68 and the next high volume node at $16 (the 61.8% Fibonacci retracement).
UNI/USD Daily Ichimoku Kinko Hyo Chart
Thin volume profiles indicate quick and easy movement. When price moves out of a high volume node into a thin volume profile range, it is like a vacuum – price gets sucked into the next high volume node. For Uniswap price, the next high-volume node is at $16.
If Uniswap price closes below the daily Tenkan-Sen, then there is a genuine risk that a bearish continuation move will begin and could exceed the 2022 lows to test the 1005 Fibonacci extension at $6.78.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.