Uniswap failed to break through the $6.7 level on Thursday. The move is a negative sign for investors and traders. The shorter time frames indicate that the momentum has started to slow down even throughout today. The decline in Bitcoin’s value may have caused the price of Uniswap to lag.
The Uniswap Indicator Is Bearish
The recent price movements of both cryptocurrencies have a strong relationship. Bitcoin has been following the trend of Uniswap. As the value of Uniswap continues to decline, it could be retracing its recent gains. Notably, UNI has risen by 14% in the past seven days.
UNI fell to a low of $6.379 on Wednesday, which is 7.62% lower than its previous close of $6.555. The price action in the past suggests that the stock is developing a potential bearish momentum. Its momentum indicator is also at a low point.
The daily and 4-hourly charts show the same pattern. According to CryptoQuant, the amount of UNI currency on the market is at an all-time high. The rise in foreign exchange reserves also indicates that the current situation is worse.
Daily transactions of UNI have been volatile since September 27. The crypto rallied and tested its $6.7 resistance level during this period. The price action in the past few days has been similar to that of Bitcoin. Despite the lackluster demand for the company’s currency, Bitcoin and UNI are showing signs of recovery.
Is It a Retreat or an Advance?
According to a recent research report, the price of UNI could drop to $5.50 within the next couple of years, which could trigger a bigger sell-off in the cryptocurrency market. That could cause investors to acquire a position in cryptocurrency.
Although the technical aspects of UNI are relatively neutral, its price could still be in a near-stabilization phase. On the charts, it seems that the 38.20 level supports the price.
The price of UNI is relatively stable, and the technical indicators are neutral. That could help the bulls in their efforts to break out of their recent trading range. However, it has not surpassed the $6.49 resistance level.
If the price of UNI breaks through this resistance level, it could lead to a potential rally to the $6.7 level. However, if the trend continues to decline, it could cause the price to fall to $5.5 or $6.
$20k Is on the Line for BTC
According to TradingView and Cointelegraph Markets Pro data, Bitcoin/USD was trading at around $19,600 at the time of writing. The previous day, it had experienced a volatile period, losing $19,000 before finding support.
The day was expected to be crucial for the bulls as the monthly close and the release of European consumer price index data was expected to provide some impetus. Geopolitical events related to Russia’s actions in Ukraine were also expected to be in the news. Vladimir Putin was also scheduled to speak at a ceremony regarding the country’s annexation of Ukraine’s territory.
According to Il Capo of Crypto, Bitcoin’s next move higher would likely lead to losses as the price action would likely take place before Putin’s speech. He noted that the price would likely spike before the event.
Incomesharks, a market analysis firm, said that the bears have become less confident about shorting Bitcoin as the price has increased. In a tweet posted on September 29, the company noted that the selling pressure has started to ease, and it feels like the wind is blowing. It said the bears are now more cautious, shifting from their previous euphoria.
On the day, Incomesharks noted that the US equity futures were showing signs of strength, which could provide some support to the price of cryptocurrencies. “$SPX futures pushing up. Markets have flip-flopped almost every other day this week. Bulls holding support with strength,” it summarized.