Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- UNI’s price action hit a roadblock at the $4.4 resistance, resulting in another price drop.
- Sellers tried to gain the advantage with an increase in short positions.
Despite the bullish market conditions, Uniswap remained [UNI] failed to break above the mix of a resistance level and a bearish order block at the $4.4 price zone.
Read the one from Uniswap [UNI] Price forecast 2023-24
AMBCrypto’s previous look at UNI highlighted the selling pressure the altcoin was under, with bulls having to clear multiple price hurdles. While the bulls managed to break the $4.2 price threshold, the bearish order block of $4.4 was a step too far.
This led to an 8% decline over five days, with UNI trading at $4 at the time of writing.
Low demand limited bullish rally
Source: UNI/USDT on Trading View
The On Balance Volume (OBV) decreased by more than $5 million during the period considered. This loss of trading volume halted the bullish rally, allowing sellers to reenter the market at resistance levels.
With the price trading midway between the $4.4 resistance and the $3.8 support, a retest of the $3.8 support seemed more likely in the near term.
This was further supported by the Relative Strength Index (RSI) falling below neutral 50 – a sign of easing buying pressure and an increase in selling pressure.
Thus, both UNI’s price action and the indicators on the chart revealed the short-term bearish trend in the market.
Another factor that could impact UNI is the recent imposition of a 0.15% interface fee on Uniswap, with traders favoring a sell-off rather than an accumulation, based on AMBCrypto’s findings.
Traders chose to go short based on UNI’s spot market activity
Source: Coinglass
How much are 1,10,100 UNIs worth today?
Market speculators in the futures market were bearish in the short term. According to Mint glassThe long/short ratio showed that shorts had a 51.38% share of the open contracts on UNI.
This indicated a further short-term price decline, with the $3.8 support becoming the best possible price level for a new bullish rebound.