Recently, Uniswap (UNI) has experienced some volatility. The last three day saw UNI make gains and then lose around 10% on the price charts.
Although there was a support zone nearby, the technical indicators did not offer a bullish outlook on the shorter timeframe. The market’s low demand for BTC can also be blamed for the lack of buying interest in UNI.
Based on the last several days of trading, the £5.20 billion market cap altcoin appears to have established a short-term range. Over the past week, the £5.16 support level has largely been observed. However, there was a small detour to £4.96 and a swift recovery to £5.54.
A longer timeframe analysis identified the £4.94–£5.19 area as a demand zone. The £5.54 region was found to be a supply zone on the shorter timeframes. The range’s midpoint, at £5.35, has recently served as both support and resistance.
The short-term range gained credence as a result of this. The range lows at £5.15-£5.19 could be bought with a tight stop-loss in place if a bounce is expected.
The bearish crossover of the 55-period and 21-period moving averages can serve as resistance in the event of the price going up.
The hourly chart’s momentum has been oscillating toward the bearish side, as shown by the RSI dropping below the neutral 50 level. Furthermore, over the past few days, the RSI has made a number of lower lows. This suggested a growing bearish trend.
Consequently, it seemed expected that the price would head toward £5.15. It remained uncertain, though, if UNI would decline even further.
Over the last few days, the OBV has increased. It established higher lows than the RSI. This meant that there was significant buying pressure and little selling.
Hence, buying the dip to £5.15–£519 could result in a profit as a bounce back to £5.54 could occur due to high demand.
At the time of writing, BTC was trading in a strong area of support, and there was inherent volatility on the lower timeframes. Traders wanting to go long can target the £5.15-£5.19 area with a stop-loss just below £5.11.
