UNI chalks bearish breakout – Can late sellers benefit?
Journalist
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Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
- UNI dropped under its $4.50 – $4.94 vary.
- Extra lengthy positions had been discouraged.
Uniswap [UNI] sellers gained market management on 31 August and fronted a bearish breakout from the short-term vary of $4.50 – $4.94. However the value motion edged increased in the direction of the range-low as of press time and will current one other shorting alternative for late sellers.
How a lot are 1,10,100 UNIs price in the present day?
In a brand new improvement, among the many high DeFi fuel customers, UNI contracts led with over 50% consumption. That underscores its resilience and dominance within the area.
Can late sellers profit?
Supply: UNI/USDT on TradingView
The range-low of $4.5 was a sticky resistance throughout the June restoration. As such, it might turn into bulls’ headache, particularly if Bitcoin [BTC] drops under $26k. In that case, the worth rejection at $4.5 might push UNI decrease in the direction of the June low of $3.64.
Such a downward spiral might give late sellers a brief alternative with an entry place at $4.5. The take-profit ranges shall be $4.2 for conservative and $.3.94 for aggressive gamers. However the latter was a riskier endeavor.
Conversely, a convincing reclaim of the range-lows ($4.5) and a transfer above $4.67 will invalidate the brief set-up.
In the meantime, the Relative Energy Index and the Chaikin Cash Circulation had unfavorable readings, demonstrating muted shopping for stress and weak capital inflows.
Lengthy positions discouraged
Supply: Coinglass
Based on Coinglass, UNI suffered extra liquidation of lengthy positions than brief positions. Over $860k longs had been rekt in 12 hours earlier than press time. Over the identical interval, shorts suffered lower than $10k liquidations, underscoring a bearish bias on the upper timeframe charts.
Learn Uniswap’s [UNI] Value Prediction 2023-24
Nevertheless, the weighted funding charges confirmed spectacular indicators of restoration, which factors to enhancing sentiment. Nevertheless, a transfer and subsequent shut above $4.5 might verify a bullish bias.
So, monitoring BTC motion is essential for better-optimized set-up and danger administration.
