Uniswap's $UNI Faces a Pivotal Moment: Will It Break or Break Down?
Entry: $6.55 🟩
Target: $8.60 🎯
Stop Loss: $5.92 🛑
Uniswap ($UNI) has recently witnessed a dramatic breakout, soaring to $10.3, fueled by the UNIfication proposal and an anticipated buyback. However, the tides have shifted, and UNI is now teetering just above the critical support level of $5.92. The daily chart still reflects a bullish trend, especially after breaking the previous high of $8.6, but caution is warranted.
The 4-hour chart presents a mixed bag of signals. While the Money Flow Index (MFI) suggests growing buying pressure, the Chaikin Money Flow (CMF) indicates that significant capital has been exiting the market since November 20. The price structure leans bearish, with sellers firmly in control after a retest of the $8.6 supply zone.
A breakthrough above $6.55 could signal a recovery, enticing traders to go long. Conversely, a drop below $5.92 would confirm the downtrend, keeping the bearish outlook intact. With open interest stagnant and negative funding rates, market sentiment remains bleak. The next moves for $UNI are crucial—stay alert!
#Uniswap #CryptoTrading #TechnicalAnalysis 🚀
