Uniswap Price Analysis: How High Will UNI Climb Before Bears Resurface?

Recent trends indicate a potentially significant rally for Uniswap’s UNI token, although market dynamics are complex. Despite earlier gains, some indicators suggest a bearish sentiment may be looming, urging traders to tread carefully. Current support levels and market signals will determine UNI's next move.

Key Takeaways

Swing traders have a buying opportunity for UNI as the daily chart indicates a bullish trend, but the crucial support level at $5.92 must hold.
Conversely, indicators show strong bearish dominance on shorter timeframes.
UNI experienced a rapid rise to $10.3 earlier this month, influenced by the UNIfication proposal and a buyback strategy.
A report by AMBCrypto noted potential retracement levels for Uniswap's price at $6.86 and $5.92. Source: UNI/USDT on TradingView

Currently, UNI is trading just above the $5.92 price support. The daily timeframe continues to show a bullish trend, especially following the previous swing high breach at $8.6.

In other developments, the Uniswap Foundation emphasized the urgent need for tax clarity and regulatory guidance in the DeFi sector via a post on X.

Uniswap Retraces 40% After Governance Proposal Surge- Is a Rebound Possible?

What Lies Ahead for UNI’s Price Trends?

Uniswap 4-hour Chart Source: UNI/USDT on TradingView

The 4-hour chart reflects mixed technical signals. The Money Flow Index (MFI) has climbed above 50, suggesting increased buying pressure and positive momentum in recent days. Meanwhile, the Chaikin Money Flow (CMF) remains below -0.05, indicating substantial capital outflow since November 20th.

The bearish price structure on the 4-hour chart has persisted for over a week, and a retest of the $8.6 resistance level suggests that sellers have taken control.

Will the market conditions shift? Not likely, based on current indicators.

Recovery or Continued Decline?

A move above $6.55 for the UNI token would signal the first signs of recovery, potentially presenting buying opportunities for traders focused on shorter timeframes. Uniswap Coinalyze Source: Coinalyze

Conversely, if UNI falls below the critical support level of $5.92, it would suggest sustained bearish momentum. This latter scenario seems more plausible given current market evidence.

Additionally, Open Interest has remained stable over the last three days, and the funding rate has occasionally shifted into negative territory, indicating that long positions are being funded by short sellers—suggesting a bearish outlook. Although spot Cumulative Volume Delta (CVD) has risen in the past 48 hours, it is not enough to counteract last week’s selling pressure.

Disclaimer: This information is for educational purposes only and does not constitute financial advice.