Uniswap price recovery hits wall as bears smash rally into the ground

Uniswap (UNI) price was on good terms to stage a bullish breakout as a knee-jerk reaction got underway on Tuesday. That price action attempted to stop bears in their tracks by pushing the price action above $5.22. Unfortunately, the attempt failed as the bears saw the coup coming and already pared back the gains a few hours later. Expect to see a possible further continuation as Uniswap's price looks unfit to head higher and instead could drop below $4.95.

Uniswap price to drop 5% on feeble bullish attempt

Uniswap price is set to hit the tarmac and break below $5 after bulls staged a weak and meek attempt to break above $5.22 to the upside. As such, it does not even count as a rejection at that level, because bears already cut short the attempt beforehand and pared back the green 4-hour candle nearly in full. This points to a dismal performance from bulls who started taking profit quite quickly, which took the wind out of this rally’s sails. 

UNI should head lower now as the only real nearby support will be found at $4.95. The attempted reaction from the bulls is now turning against them, and they could see bears performing a bull squeeze. This might even see pressure building on $4.95 and heading toward $4.90, possibly testing ground for a new low in 2023.

UNI/USD  4H-chart    

The fact that the full gain of the green candle is not materializing points to bulls pushing back against the small fade. Should price action be able to swing back up to $5.22, expect to see a breakout with a quick sprint to $5.41.? Bulls would enter the uptrend again as they enter the area above the ascending trend line again with more gains for the medium term.