On Thursday, the $6.7 price range at Uniswap got rebuffed. The trend has slowed in shorter time frames which can be a bearish indicator to investors and traders.
It’s possible that the recent decline in Bitcoin’s value is responsible for UNI’s lag.
According to statistics, there’s a fairly high correlation between UNI (United Nations Information) and Bitcoin.
Both coins have shown strong correlation in recent price movements. UNI has been closely following Bitcoin’s price action.
The bearish slump of Uniswap has now entered its second day. This means that the currency pair could be retracing recent gains.
UNI trades at $6.45 as of Friday, up 12% over the previous seven days according to data from Coingecko.
Uniswap Indicator: Bearish
Yesterday, UNI closed at $6.379. This is 7.62% below its September 28 closing value of $6.555. A developing bearish trend is evident in price movements from the past.
At the moment, momentum indicators are at bearish levels.
The same trend is evident in daily and hourly trends. According to CryptoQuant statistics, the amount of UNI currencies on hand has reached an all-time high. The rise in foreign currency reserves is a sign of worse economic conditions.
At the time of writing, daily UNI transaction volumes in shorter periods from September 27 through now are volatile.
UNI gained strength and crossed the $6.7 threshold during this period on September 27, 2017. The price trend was similar to that seen in Bitcoin.
Despite the fact that UNI demand is low, BTC as well as UNI show signs of recovery.
Is it a retreat or an advance?
Recent research showed that UNI will fall to $5.50. This volatile area could lead to a larger sell-off of crypto.
Investors and buyers could attempt to reestablish the currency’s value by purchasing a stock within this price range.
However, UNI’s technological aspects are relatively neutral. The chart shows that this seems to indicate a near stabilization of the prices, supported by the 38.20 Fibonacci value.
Bulls may gain strength to breakout by taking advantage of this neutrality in technical indicators as well as the stable price range.
However, UNI is still struggling to overcome the resistance of $6.49
Breaking this resistance could lead to a steady rally towards the $6.7 level.
UNI is at risk of losing $5.5 to the declining price trend and rising to $6.7.
Source: TradingView.com| Source: TradingView.com Brightnode chart: TradingView.com Featured image