Journalist
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- UNI dropped below its $4.50 – $4.94 range.
- More long positions were discouraged.
Uniswap [UNI] sellers gained market control on 31 August and fronted a bearish breakout from the short-term range of $4.50 – $4.94. But the price action edged higher towards the range-low as of press time and could present another shorting opportunity for late sellers.
How much are 1,10,100 UNIs worth today?
In a new development, among the top DeFi gas consumers, UNI contracts led with over 50% consumption. That underscores its resilience and dominance in the space.
Can late sellers benefit?
Source: UNI/USDT on TradingView
The range-low of $4.5 was a sticky resistance during the June recovery. As such, it could become bulls’ headache, especially if Bitcoin [BTC] drops below $26k. If so, the price rejection at $4.5 could push UNI lower towards the June low of $3.64.
Such a downward spiral could give late sellers a short opportunity with an entry position at $4.5. The take-profit levels will be $4.2 for conservative and $.3.94 for aggressive players. But the latter was a riskier undertaking.
Conversely, a convincing reclaim of the range-lows ($4.5) and a move above $4.67 will invalidate the short set-up.
Meanwhile, the Relative Strength Index and the Chaikin Money Flow had negative readings, demonstrating muted buying pressure and weak capital inflows.
Long positions discouraged
Source: Coinglass
According to Coinglass, UNI suffered more liquidation of long positions than short positions. Over $860k longs were rekt in 12 hours before press time. Over the same period, shorts suffered less than $10k liquidations, underscoring a bearish bias on the higher timeframe charts.
Read Uniswap’s [UNI] Price Prediction 2023-24
However, the weighted funding rates showed impressive signs of recovery, which points to improving sentiment. However, a move and subsequent close above $4.5 could confirm a bullish bias.
So, tracking BTC movement is crucial for better-optimized set-up and risk management.
