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Uniswap [UNI] prices continued to dive lower, where will it see some respite?

Press Releases Crypto News AMB-Crypto Uniswap [UNI] prices continued to dive lower, where will it see some respite?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Uniswap had a strong bearish outlook in the lower timeframes
The confluence of a higher timeframe demand zone and range lows highlighted a critical area on the price charts

Uniswap [UNI] has been in an uptrend on the daily timeframe since early July. August saw the bulls face rejection at $6.7, marking a potential range that the token would trade within in the coming weeks.

Read Uniswap’s [UNI] Price Prediction 2023-24

Bitcoin [BTC] dropped from $29.6k on 14 August to trade at $29.1k at press time. Although this was only a 1.66% drop, it has affected the sentiment in the altcoin market heavily. Uniswap faced intense selling pressure over the past 24 hours.

The swift recent losses showed the range lows might not be defensible

Source: UNI/USDT on TradingView

The range formation (green) for UNI extended from $5.7 to $6.7. Over the past week, the mid-range mark at $6.2 saw some skirmishes between buyers and sellers, but a conclusive winner did not emerge until 15 August.

The strong selling pressure forced UNI to nosedive below the $6.2 and $6 levels. At the time of writing, UNI was trading at $5.84 and within a bullish order block on the daily timeframe. This demand zone had confluence with the range lows as well.

Therefore, if a reversal were to occur, this would be the ideal spot. Yet, the OBV jumped below a short-term support level as selling volume rocketed higher. If BTC losses continued, it looked very likely that UNI would drop to the next zone of support at $5.2. A drop below $5.7 and a retest of the same could offer a shorting opportunity.