Uniswap faces price rejection: Here’s where to look for buying opportunities

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

Uniswap’s [UNI] recovery could be at stake after facing a price rejection at press time. UNI recently plunged by 19%, dropping from $7.533 to $6.103. But bulls found steady ground at $6.228 only to face rejection at $7.030 at the time of writing. 

Realistic or not, here’s UNI’s market cap in BTC’s terms

Source: UNI/USDT on TradingView

UNI’s recent price correction formed a descending channel pattern to denote the selling pressure UNI weathered in the last few days. The steady ground at $6.228 allowed the bulls to post a 12% rally, but the gains could be cleared if BTC doesn’t surge past $24.95K.  

The bears could push UNI to the $6.495 – $6.631 zone. This zone could offer new buying opportunities. A further drop to $6.228 could offer an even better-discounted bargain for the token. But the extended fall could be checked by the 75-period EMA of $6.475. 

How much are 1,10,100 UNIs worth today?

However, a break above the price rejection level of 7.030 would tip bulls to aim at the November level of $7.73. But bulls must clear the obstacles at $7.234 and $7.533 to target UNI’s November high. 

The RSI recorded a sharp rise, while OBV exhibited a gentle increment, indicating significant buying pressure and demand to boost the recent uptrend.

Bulls could gain more leverage if the trend continues. But a slowed momentum, as witnessed at the time of wiring, will tip the scale in favor of the bears. 

Source: Santiment

UNI showed a bearish sentiment from investors despite the rally in January. Notably, the weighted sentiment has remained relatively negative since November. It also