Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
After taking a turn from the $12-mark, Uniswap (UNI) swiftly swooped south in its extended bear run. While the sellers kept ramping up the pressure, they flipped the seven-week trendline support to resistance.
An undesired close below the $4.79 level could force a bearish pull toward the $4.3-support before a bullish comeback possibility. At press time, UNO traded at $4.89, down by 7.16% in the last 24 hours.
UNI 4-hour Chart
After the buyers failed to step up at the $6.7-mark, UNI saw a series of bearish engulfing candles put up on the four-hour timeframe. The $4.3 level has offered a strong floor for over a year now. The alt lost nearly 69.26% of its value (from 4 April) and dived towards its 16-month low on 12 May.
A continued southbound movement below the $4.7-mark could open doorways to the median (red) of the Pitchfork. Post this, the buyers could repeat their past tendencies by propelling a comeback at the $4.3-mark to challenge the bonds of its Point of Control (POC, red). However, an immediate recovery could slam into the upper fence of the Pitchfork in the $5-zone.
The RSI continued its declining phase below the mid-line and finally snapped the 41-resistance. A sustained close below the 37-level could lead to further unwanted losses on UNI’s chart.
With the OBV marking slightly higher troughs in the last five days, it marked a medium bullish divergence with the price on the four-hour timeframe. Any breach of its immediate trendline support could lead to a delayed recovery for the alt.
Looking at the recent rejection of lower prices, an immediate recovery could find itself plateauing near its POC in the $5-zone. Any close below the immediate support would aggravate the selling edge while potentially pulling UNI to the median of its Pitchfork.
Besides, the alt shares a 94% 30-day correlation with the king coin. So keeping a close watch on Bitcoin’s movement would be inevitable to make a profitable move.