Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
UNI has been in a correction and could fall below $5,267.
A break above the $5,417 resistance would invalidate the forecast.
Uniswap [UNI] has made two successful recoveries since the November 2022 market crash, reaching $6.5 each. However, the most recent recovery phase only reached $5.5 before turning into a correction.
Read from Uniswap [UNI] Price prediction 2023-24
At the time of writing, UNI was trading at $5,323 and threatened to fall below the support at $5,267. While such a downward move could bring additional profits to short traders, technical indicators (12-hour chart) and whale action urged caution.
Support at $5,267: Was a break below likely?
Source: UNI/USDT on TradingView
In the second phase of UNI’s rally, the token reached $6.5 in early December 2022 after a low of $5.0 in November 2022. It then followed a downtrend and formed a descending channel, before falling below it in a trading range.
UNI has been trading within the $4,967 to $5,417 range since mid-December and only broke through on January 4, 2023, following a huge BTC rally on the same day. The pattern breakout allowed UNI to reach the 100-period EMA of $5,609 before a correction ensued.
The RSI, CMF and MFI indicators retreated from the upper ranges, suggesting that buying pressure was easing, buyers lost significant leverage and distribution was underway.
Therefore, UNI could fall lower, breaking the support at $5,267 and settling at $5,130. The level could serve as a target for short selling.
However, the RSI has not yet fallen below the 50-point midpoint and the CMF has not yet broken below zero, which would give the bears more influence. A rejection of these indicators in the middle would favor the bulls.
If the bulls gain traction and break above the resistance at $5,417, the above bearish bias would become invalid. Such a bounce would allow UNI’s bulls to target the 100-period EMA of $5,596.
The most dominant whale supplier was behind the recent selling pressure
Source: Sentiment
According to Santiment, the dominant supplier category controlled 53% of the total supply and owned between 10,000 and 100,000 UNI coins.
This dominant category has been responsible for the recent selling push, while the next influential category (1K – 10K coins), with 19.5% control, has been piling up.
So at the time of writing, the dominant player ruled the market, and investors could follow suit to minimize risk.
Are your positions flashing green? Check the UNI profit calculator
UNI’s Open Interest (OI) remained unchanged as the price fell
According to Coinglass, the divergence between OI and the price of UNI on Jan. 2 was followed by the UNI price increase on Jan. 4. UNI Binance Exchange open interest rates fell on January 5 following a fall in UNI prices.
However, OI remained unchanged on January 6, as UNI prices fell even further. This means that demand on the futures markets remained unchanged despite the fall in prices.
While this could indicate a possible change in momentum, investors should consider the RSI, CMF and BTC movements to get a clear probable trend reversal before closing their positions.
This post Uniswap [UNI]: Bears may break out below $5,267, but…
was published first on https://ambcrypto.com/uniswap-uni-bears-could-break-out-below-5-267-but/
