Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Uniswap was in a relentless downtrend as the bears tried to push prices below $8.22 and there was clearly a lack of demand. The bearish trend flipped at two levels as of press time. Although the exchange is one of the largest decentralized exchanges, the token has struggled on the charts in recent months.
UNI-3 Day Chart
The 3-day chart was used to understand the severity of UNI’s downtrend. The coin peaked at $45 in May but has not been able to reach a higher high since then. In addition, after the August rally, the price of the token began to fall again in the charts. The $30 level was not exceeded.
Over the past few months, the price has continued to register a series of lower highs and lows, indicative of a downtrend.
The Fibonacci Expansion Levels (Yellow) were plotted based on UNI’s move from $31.41 to $13.18 giving a 27.2% extension of this move south at $8.22. Incidentally, $8.2 was a place where there was some demand for the past month.
That said, the bounce failed to climb beyond USD 13 and the market structure remained bearish.
The 3-day RSI has been below the neutral 50 line since late October. It tried to poke its nose back up but failed as the price was rejected at $12.49. Chaikin’s cash flow was also below -0.05, indicating strong selling pressure.
The OBV saw a sharp jump in the past month, but even the OBV has been in a downtrend for almost a year.
For the bulls, Uniswap would need a move above $13 to break the bearish market structure. On the other hand, the bears will aim to push the price back below the psychological level of $10, as well as push it below $8.2.
This post Uniswap: Analysis of the why behind UNI’s recovery that stopped at $13
was published first on https://ambcrypto.com/uniswap-analyzing-the-why-behind-unis-recovery-that-halted-at-13/