The most recent selling pressure on Uniswap [UNI] caused it to go below the 20/50/200 EMA, indicating a significant selling advantage. A series of red candles were produced by the sellers after the alt broke down from its reversal pattern. UNI successfully fought off the selling pressure and recaptured the $6 support level.
With the buyers being so adamant about guarding the nearby support, UNI could enter a compression phase in the upcoming sessions. UNI was trading at $6.07 at the time of this article’s publication.
UNI found rebounding grounds after its up-channel breakdown
Source: TradingView, UNI/USDT
For the past two months, UNI’s bearish pushes have been objectively fueled by the resistance of a long-term trendline.
Recent price action has resulted in a collapse of the upper channel in the 4-hour time frame, indicating that buyers have gained control.
After a long downward trend, the altcoin found safety near the $5.8 price. UNI climbed back over the $6 threshold while buyers signaled their determination to stem the hemorrhage with a bullish engulfing candlestick.
For its part, UNI’s EMAs showed a death cross as the 20-day moving average (red) dropped below both the 50-day moving average (cyan) and the 200-day moving average (black) (green).
The negative current pressure could be exacerbated by a close below the $6 mark in the coming sessions.
UNI could retest its long-trendline resistance soon if it can close above its 20-day exponential moving average. Here, the range of feasible goals is $6.4-$6.7.
Although selling pressure appeared to be easing slightly, the Relative Strength Index (RSI) remained in the bearish zone. In the event of a reversal from the centerline, the negative bias would be bolstered.
Further confirmation of a bearish divergence with the price action is a bounce off the Accumulation/Distribution (A/D) trendline’s resistance.
Improved funding rates
Source: Santiment
The finance rates were found to be quite in the buyers’ advantage. These interest rates have been quite stable in the plus territory throughout the past day. If the market reacts as expected, UNI might signal a short-term recovery before reversing again.
Last but not least, a good bet would require an understanding of the general market mood and an in-depth examination of the chain itself.
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