- Uniswap holds support at the ascending parallel channel's lower boundary.
- The IOMAP reveals the absence of robust resistance; thus, validating the impending recovery.
- Failing to close the day above the 100 SMA on the 4-hour chart would intensify overhead pressure.
Uniswap bled in tandem with other cryptocurrencies on Monday. Several tentative support areas did little to stop the losses, allowing the bearish leg to extend to $27. At the time of writing, UNI is doddering at $28 while holding above crucial support. A recovery is expected to build from this support and place UNI on the trajectory heading to $30.
Uniswap recovery depends on key buyer congestion zone
Uniswap is trading within the confines of a descending parallel channel. The lower boundary of the channel is the crucial support. Holding firmly onto this support is likely to pave the way for a rebound.
Meanwhile, bulls should focus their assault energy on the seller congestion highlighted by the 100 Simple Moving Average (SMA). Price action above this zone may trigger massive buy orders amid a renewed bullish momentum toward $30.
UNI/USD 4-hour chart
The IOMAP model by IntoTheBlock brings to light the absence of strong resistance zones. This could mean that the bulls' significant push is likely to result in a massive upswing in the near-term. However, the model brings our attention to the region running from $31 to $32. Here, roughly 8,400 addresses had previously bought nearly 18.9 million UNI.
On the downside, Uniswap sits on an area with immense support running from $27.8 to $28.65. Here, about 5,700 addresses had previously purchased approximately 285.9 million UNI. If this support remains intact, Uniswap will begin the recovery toward $30.
-637514724480772492.png)
Uniswap IOMAP model
Looking at the other side of the picture
The support at the descending channel lower boundary plays a critical role by ensuring the downside is protected. However, if Uniswap slides under it, selling pressure will begin to increase appreciably. The Moving Average Convergence Divergence (MACD) has a bearish impulse, suggesting that the downtrend may continue in the short-term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Google, Apple could remove Binance from their app store on Philippines SEC request
The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds.
XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations
Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?