UNI Price Pullback: Is $5.92 the Bottom?
Due to the UNIfication proposal and UNI buyback intentions, Uniswap (UNI) quickly surged to $10.3 earlier this month. Earlier this month, an AMBCrypto analysis noted that Uniswap token prices may retreat due to price activity. $6.86 and $5.92 were determined to be the likely retracement levels. This has happened, and UNI was just over the $5.92 support at the time of writing.
UNI Price Action Highlights Conflicting Technical Signals
The 1-day timeframe maintained its bullish tilt from the standpoint of technical analysis. Since the swing high was broken at $8.6 during the rise earlier this month, this has been the case. Conflicting technical indicator signals were displayed on the 4-hour chart. Over the previous few days, there has been more purchasing pressure and upward momentum, as seen by the MFI being over 50.
On the other hand, since November 20th, the CMF has been significantly below -0.05, indicating a significant outflow of capital from the market. The price structure for H4 was negative. This has been the situation for almost a week. The sellers were in charge since the $8.6 supply zone was retested prior to this bearish decline.
UNI Technical Outlook: Recovery or Continued Decline?
The first indication of a rebound would be an increase in the Uniswap token price above $6.55. Lower timeframe traders might be able to purchase as a result of this action. Conversely, a UNI decline below $5.92 would indicate persistent pessimism. The evidence seemed to favor that theory. Furthermore, during the last three days, there has been no increase in open interest. At times, the funding rate has fallen into negative territory. As a result, holders of short positions were compensated for long ones. It was also a sign of bearishness.
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