Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Short-sellers enjoyed more gains during Uniswap’s [UNI] price slump over the weekend. After Bitcoin’s sharp correction, the DeFi token dropped about 2.7% in the past 24 hours.
But the plunge has hit the range low and could offer bulls little hope of a price reversal if the past trend repeats.
Will the bulls defend the range low?
From 8 May, UNI has been trading sideways, with range extremes at $5.35 and $4.94. In the second half of May, the mid-range level of $5.15 acted as a sticky resistance, derailing further upward movement.
Over the weekend (3 and 4 June), UNI’s price action faced rejection at the mid-range again, setting it to retrace to the range low of $4.94. Notably, bulls have previously defended the range low. A repeat of the trend could see UNI rebound toward the mid-range level of $5.15.
If that’s the case, the range low could offer an entry for a long opportunity with a good risk ratio targeting the mid-range. A retest of the range high of $5.35 could offer more gains.
However, a session close below the range low of $4.94 and a subsequent bearish breakout will invalidate the above bullish thesis. Such an extended drop could ease at the immediate support level of $4.710.
Meanwhile, the Relative Strength Index (RSI) and On-Balance Volume (OBV) dipped, denoting increased selling pressure and low demand in the past few hours.
CVD spot declined; longs discouraged
Go to Source to See Full Article
Author: Suzuki Shillsalot
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
