Uniswap: Analyzing why UNI remains an attractive bearish bet

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
Uniswap is likely one of the largest decentralized exchanges with liquidity that dwarfs centralized exchanges comparable to Binance and Coinbase. Nonetheless, the scale and depth of the market didn’t essentially mirror on the worth chart of the token, which has been in a gradual downtrend since final August. There have been intervals of consolidation interspersed within the downtrend, and that is one thing long-term buyers should keep in mind.
UNI- 1 Hour Chart

Supply: UNI/USDT on TradingView
The value motion has been a collection of decrease highs and decrease lows since UNI discovered a neighborhood prime at $12 in late March. Beforehand, in late February and early March, some consolidation occurred on the $8.2 mark adopted by a rally to $12. Nonetheless, this rally was unable to interrupt previous the highs of early February, which reached $13.
Due to this fact, the longer-term development could be stated to favor the bears. A flip towards the bullish facet would wish UNI to interrupt previous the $8.24 degree as soon as extra, and retest it as help to supply shopping for alternatives.
This might take a while, as each Bitcoin and Uniswap have been each beneath heavy resistance ranges. UNI has some resistance at $6 and $6.88, with a complete lot extra resistance within the $8-$8.2 zone.
Rationale

Supply: UNI/USDT on TradingView
The symptoms agreed with the worth motion and mirrored a market that has skilled a powerful downward development from early April. The Superior Oscillator and the MACD each slipped beneath the zero degree initially of April, and proceed to stay in bearish territory.
Furthermore, each the indications dipped decrease than the newest lows, in response to the downward stress of the previous few days. On the identical time, the OBV additionally fell steeply.
Due to this fact, long-term buyers haven’t any cause to purchase the dip but because the dip may not have ended. As an alternative, they’ll decide to attend for a breakout previous resistance and the inflow of great demand, and a pointy uptick within the day by day OBV.
Conclusion
The momentum and the development have been particularly in favor of the bears over the previous month. A bounce towards the $6.8 and $8 ranges might be seen within the subsequent few days, however a shopping for alternative was not but seen.