Briefly –
- Uniswap had its price breaking out of the descending channel on 1 October, but its momentum faded.
- A decisive close past $25.24 might indicate an upswing resurgence.
- UNI will encounter $29.43 before testing the resistance barrier at $33.34.
The 1 October sessions witnessed Uniswap overcoming a consolidation phase. However, the asset lacked the momentum to keep moving. Meanwhile, a bounce to push beyond the nearest resistance zone might catalyze another uptrend.
UNI Ready for a Volatile Action
Uniswap formed three lower highs and lower lows since 18 August. Connecting the swing level using trend lines creates a descending channel. Though price actions past the channel’s top barrier usually show a breakout and trigger an upward rally, Uniswap appears to encounter issues.
Since the breakout, UNI has lost 7% of its value, breaching the support floor at $25.24. That way, Uniswap should gather strength and form a decisive close beyond this obstacle to trigger a new upsurge. That means bulls’ commitment.
With adequate buyers’ actions, Uniswap might record a 40% uptrend towards $33.34. However, the alternative coin has to deal with massive resistance at $29.43. Bulls should overpower this level to reach their targeted destination.
Santiment’s MVRX (Market Value to Realized Value) model firmly supports this bullish narrative. Analysts use this metric to gauge the average loss/profit by investors that bought UNI over the last year.
The yearly MVRV hovers around -1.21% at the moment. That shows that near-term investors have sold their Uniswap holdings. That translates to a possible sell-off around the asset’s current level. Furthermore, long-term holders tend to gather at the negative region. With that, buying pressure increase might kick-start another upside move.
Also, the GIOM model confirms the somewhat optimistic case. The model indicates that 31,700 addresses that bought 244.65 million Uniswap at $27.29 (average price) stays ‘Out of Money’ and might sell if the token rise towards the level. That way, bulls should conquer this resistance area for upswing chances.
As things appear ugly for Uniswap, extending this downtrend might see UNI retesting the support floor at $20.62. Breaching this level will show buyers’ weakness and knock the token down towards $18. Failure of bulls to defend this area will cancel the bullish narrative, and UNI can drop to hit $14.01.
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