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?
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
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.