Uniswap’s Current Market Outlook
At the latest update, Uniswap’s [UNI] price stood at $7.21 following an 8% decrease in the last 24 hours. This recent downtrend aligned with a generally negative sentiment in the wider cryptocurrency sector, attributed to traders responding to geopolitical tensions in the Middle East.
On the daily chart, UNI displayed a mix of signals as its price tested the lower boundary of an upward parallel channel. A breach below this channel could indicate a weakening of buying pressure and a potential reversal in the prevailing trend.
Examining the green volume bars on the histogram, it appears that buyers currently outnumber sellers. Moreover, with the Relative Strength Index (RSI) hovering around 56 and trending upwards, it suggests that some traders may be viewing the dip as a buying opportunity.
If the RSI surpasses the signal line, it could generate a buy signal, potentially propelling UNI prices higher towards testing resistance at the 0.786 Fibonacci level ($7.37).
Conversely, the Moving Average Convergence Divergence (MACD) line presents a different outlook. The convergence with the signal line indicates that if it drops below, the overall momentum may shift towards bearish sentiment.
A surge in selling pressure due to bearish sentiment might drive UNI prices downwards to test support around the 0.382 Fibonacci level ($6.43).
Observing Uniswap’s liquidation heatmap reveals a notable concentration of liquidations above the current price level, particularly within the $7.30-$7.80 range, implying a robust resistance zone.
Should UNI breach and reach these liquidation levels, it could prompt short-sellers to close their positions, triggering a short squeeze that may intensify buying momentum and lift prices.
Increased Uniswap Exchange Deposits
Data provided by CryptoQuant indicates a spike in UNI deposits to exchanges on October 1st, nearing a weekly peak.
Uniswap exchange inflows surged to 893,000, nearly double the volume recorded on the preceding day.
A rise in the number of UNI tokens deposited onto exchanges heightens selling pressure, potentially bolstering the bearish narrative.
Despite this, data from Coinglass reveals that 67% of traders on Binance have taken long positions on Uniswap, while only 32% have assumed short positions, indicating a prevalent bullish sentiment toward Uniswap’s future price trajectory.