Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
UNI was bullish on the 12-hour chart
Trading volumes fell; short-term selling pressure increased
on April 13, Uniswap [UNI] flipped its structure to bullish but faced downside pressure near the $6.5-$6.6 resistance. At the time of writing, UNI was surging and trading at $6.3, trailing Bitcoin [BTC] has reclaimed the $30,000 price range.
But the rally faced a double block from 200-MA (moving average) and range resistance, which could see it pull back quickly.
Read Uniswaps [UNI] Price prediction 2023-24
More rally or dump – which way for UNI?
Source: UNI/USDT on TradingView
After breaking out above the multi-week descending trendline, UNI faced two price rejections with resistance at $6.5 – $6.6. For the past few days, the candlesticks closed below the 200-MA, making it an important dynamic resistance level as well. As such, the price action faced double blocking that could tip sellers into entering the market.
Shorting at the current level could offer a good risk ratio if the pullback drops to the falling trendline level of $6.0. However, the 50-EMA level at $6,102 could also delay the dump. Therefore, another $6.5 – $6.6 price rejection, especially if BTC fails to rise above $30.4k, would present a good opportunity to go short.
A close above USD 6.6 will invalidate the above bearish thesis. A bullish BTC could accelerate such an uptick, causing UNI bulls to target the $7 psychological level. The next resistance level was at $7.5.
Meanwhile, the Relative Strength Index (RSI) registered an uptick, indicating increased buying pressure. On the other hand, the stochastic RSI retreated, but almost reached the neutral level. It suggested that the bulls had the upper hand, but selling pressure was not far off.
Nevertheless, the Average Directional Index (ADX) rose, indicating that the recent rally has not abated.
Trading volume declined; selling pressure increased
Source: Sentiment
Is your wallet green? Account UNI profit calculator
UNI trading volumes peaked around April 9 – 10, as evidenced by the active addresses (yellow bars). Mail whose active addresses declined, undermining trading volumes and exposing UNI to increased selling pressure.
Interestingly, there was an increase in supply on the exchanges during press time – evidence of short-term selling pressure. On the other hand, off-exchange supply, indicating near-term accumulation, fell lower, which is a replay of increasing short-term selling pressure.
This post Like Uniswap [UNI] reaches the main supply level, this is where bulls can bid…
was published first on https://ambcrypto.com/as-uniswap-uni-hits-key-supply-level-heres-where-bulls-can-bid/
