- UniSwap rally from the primary support at $2.5 rejected at $3.5.
- The 50 SMA in the 4-hour range limits upward price action in conjunction with the descending parallel channel resistance.
UniSwap has lost over 60% of its value since its all-time high of $8.6. The token received immense support after the launch in September but failed to sustain the uptrend, mainly due to decreasing liquidity. Nonetheless, the extended breakdown recently approached a bottom around $2.5, as reported. A reversal ensued from this level, with the price making a remarkable upswing. At the time of writing, UNI is trading at $3.24, following a rejection at $3.5.
UniSwap resumes the downtrend
Some people might argue that UNI's downtrend never hit bottom because the token is still trading within a descending parallel channel. However, it is essential to consider a 16% surge over the last 24 hours. The reversal from the channel support broke above the middle boundary before hitting pause at the upper trendline. UNI/USD was also rejected by the 50 Simple Moving Average (SMA) in the 4-hour timeframe.
The Relative Strength Index (RSI) brings to light a developing bearish momentum following the rejection at $3.50. To avert the potential losses, buyers must pull the price above the channel's upper boundary resistance as well as the 50 SMA.
UNI/USD 4-hour chart
IntoTheBlock's IOMAP model reveals intensifying selling pressure towards $3.5. The most significant hurdle runs from $3.4 to $3.5. Previously, nearly 22,400 addresses bought roughly 15.4 million UNI in this range. Although the short term resistance at $3.3 might be brought down, most buying pressure will be absorbed, sabotaging the bulls' efforts.
UniSwap IOMAP chart
On the downside, the lack of a robust support area suggests that a reversal could erase most of the progress made in the last 24 hours. Meanwhile, some of the selling pressure could be absorbed in the range between $3.01 and $3.09. Here, 116 addresses previously bought roughly 8.3 million UNI.
The "Daily New Addresses" metric shows a slight increase in the number of new addresses joining the network. A downtrend recorded from the beginning of October bottomed out at roughly 2,100 addresses, giving way for a spike to approximately 3,300 addresses on October 8. The new addresses' continued growth is a bullish signal for the network and UniSwap's value.
UNI new addresses chart
Looking at the other side of the picture
It is worth mentioning UNI has drawn investors' attention following the bounce from $2.5. If the token uptake rises based on the increasing number of new addresses joining the network, then the uptrend could receive a fresh boost. Price action above the descending parallel channel and the 50 SMA will most likely pave the way for gains beyond $4, invalidating the expected reversal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.