Uniswap (UNI) Might Drop to Lower Supports as Demand Weakens
- UNI met rejection at $6.7 again.
- The lower timeframe remained bullish, but demand faded.
- Buy opportunity near $5.5 amid deepening declines.
Bitcoin’s under below the $20K mark early this week, following massive selling pressure that halted bulls’ goal of an uptick past the resistance at $20.8K.
A BTC southward move had most assets in the altcoin market suffering. Uniswap (UNI) witnessed an 8% slump and exhibited a bearish stance.
A move beyond $7 might renew buyer hopes. However, the alternative token lacked demand to back upside price actions.
UNI Hits Bearish Order Block, Halting Last Week’s Uptrend
UNI maintained bearishness from the technical standpoint since the price declined beneath $8.2 during mid-August sessions. The previous month had UNI establishing a range from $5.7 to $6.7.
The RSI (Relative Strength Index) swung between 55 and 35 since September’s early sessions. That happened even as the price didn’t exhibit a massive downtrend. That triggered the mentioned range.
More importantly, the resistance at $6.88 witnessed a pessimistic order block emerging. Meanwhile, market players should watch for selling opportunities as the higher charts exhibited a bearish market structure. Moreover, such an opportunity happened in recent days.
An entry after this publication might present less reward for heightened risks, though a buying opportunity might emerge at $5.5 in the upcoming days.
Meantime, the cyan area has served as support since August’s final sessions. Yet, the OBV doesn’t back trend reversals. Hence, anyone buying at around $5.5 might sell once the token surges towards the resistance at $6.5.
Are Exchange Inflows Rising Again?
Glassnode’s exchange netflow data indicated stable outflow during July’s late sessions when the price climbed to $9.2 from $6.5. Inflows have remained dominant (since then), indicating surged selling momentum on the alternative token.
Also, the surge in inflows matched price plummets since August. Considering volume flow and price actions showed a relatively fearful sentiment for long-term investors. Also, investors should beware that the price and the active supply maintained downward trends.
Messari confirmed a 28.7% drop in Uniswap’s One-Year Active Supply. A $6.7 resistance retest within the coming week or two would potentially present a more appealing selling opportunity than buying. Southward actions might see UNI rebounding from $5.5.