- Bulls Cannot Overcome Resistance at Value Area Low.
- Active deposits on exchanges increased, indicating increased selling pressure.
Uniswap [UNI] posted gains of 3.1% in the past 24 hours to signal a possible bullish reversal. However, this did little to detract from overall market sentiment as UNI’s structure remained bearish at press time.
Read Uniswap [UNI] Price Forecast 2023-24
UNI’s short-term recovery can be boosted with Bitcoin [BTC] sticking to the $29k price area.
The bullish recovery stopped
Source: UNI/USDT on trade view
The price of UNI has been falling since April 19. The bearish order block in the $6.3 price area stopped the bullish momentum with a price crash below the $5.7 support level.
Bulls were able to halt the bearish momentum with a rally from the $5.2 support level. However, the bullish rally failed to break past the USD 5.6 – USD 5.7 area.
A look at the Visible Range Volume Profile tool on the four-hour time frame showed that the Value Area High (VAH) and Value Area Low (VAL) were $6.4 and $5.6, respectively. Buyers encountered resistance at the VAL ($5.6) with a bearish order block below that served as a catalyst for price rejection.
The RSI crept above the neutral 50 and the OBV recorded a slight increase. However, both experienced a sharp drop afterwards, suggesting that the bullish rally was fading.
A four-hour candle near the VAL could provide further buying opportunities for UNI bulls. Alternatively, bearish momentum could force a retest of the $5.2 support level.
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Market sentiment aligned with sellers
Source: Sentiment
Dates from Sanitation over the past 24 hours showed an increase in active deposits, while outflows from the exchange were low. This suggested the presence of active sellers still looking for short UNI.
This sentiment was confirmed by long/short ratio data from Mint glasswith shorts maintaining 54.9% dominance. While overall market sentiment remained bearish, bulls may start a new price rally with a daily candle close above $5.6.
Source: Coinglass
