The past ten days have been tumultuous for crypto prices across the board.
The UNI price wasn’t sparred. For instance, at the time of writing (Dec 12), the token is down a massive 12 percent in the last week of trading according to coin trackers.
However, this free-fall is coming to an end. On the last day of trading, there are hints of strength. The Uniswap price is up five percent against the greenback and bulls appear to be back, propping prices as a result.
Uniswap (UNI) Price Overview
Despite what appears to be accumulation in lower time frames, sellers are ahead of the curve. Price action in the daily chart favors sellers.
Note that candlesticks have been printing lower lows in the past few days. With strong sell momentum, bars are banding along the lower BB. It will take more than a single bullish bar to reverse a momentum back by several days of bear pressure.
In the immediate term, traders should watch out how prices react first at Dec 11 lows of around $3. Meanwhile, if buyers take charge and prices reverse as they shake out bears, a close above the highs of early this week’s consolidation at around $3.5 may embolden bulls aiming at $4.5.
Still, even with optimism, price action and the prevailing trend skew negatively against buyers. As such, assurances can only be from a drastic markup in trading volumes exceeding recent averages above previous support now resistance level at $3.3.
Uniswap (UNI) Market Movers
Overly, traders are optimistic, pinning their confidence in upcoming fundamentals. Traders are specifically training their eyes on whether a proposal that will signal the resumption of UNI distribution for another two months will sail.
Beyond that, propping prices in lower time frames is news on a Maker governance proposal that was put forward to add DAI-ETH and USDC-ETH Uniswap liquidity tokens as collateral.
Hayden Adams, the founder of Uniswap, said this brings additional benefits for liquidity providers who stand to increase the efficiency of their liquidity and flexibility. Liquidity providers will be free to modify their exposure in a meaningful way.
A Governance Poll has been added to the voting portal to signal support for/against:
— Maker (@MakerDAO) December 7, 2020
Besides, the newly launch Aave V2 includes on-chain integration of Uniswap for both collateral and yield swaps.
👻It's the moment we've all been waiting for… Aave V2 is live on mainnet! 🍾🎊
Head over to https://t.co/gzkAogjUOS to try it out
Check out the Aavesome new features, security & audit details, and more in the latest blog post: https://t.co/N1oXXH4X5u
— Aave (@AaveAave) December 3, 2020
Uniswap (UNI) Price Prediction
The Uniswap price is on a downtrend as mentioned earlier.
However, there is some level of support as visible in the daily and the 4HR charts, respectively. Clear, there is a double bar bullish reversal in both time frames. It is clearer in the 4HR chart and if confirmed in the daily chart, there will be an opportunity to ramp up in lower time frames.
In the 4HR chart, there is a three-bar bullish reversal pattern with the bull bar posting high trading volumes exceeding recent averages at around the 50 to 61.8 percent Fibonacci retracement levels of the Nov trade range. Still, there has been confirmation of buyers. If prices rally above the buy trigger at $3.3—the previous support-now-resistance, the UNI price could rally back to $4.1 and $4.5, respectively.
On the flip side, losses below Dec 11 lows of $3 may spark dump downs towards $2.3, the 78.6 percent Fibonacci retracement of Nov 2020 trade range.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author, and are not financial advice. Do your research.
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