Uniswap hits 4-month high but profit-taking stalls rally – What now?
The post Uniswap hits 4-month high but profit-taking stalls rally – What now? appeared on BitcoinEthereumNews.com.
Uniswap whale activity surged as large transaction volumes increased from 3.05M to 21.39M. UNI’s rally to a 4-month high stalled after more than 9M UNI were deposited to exchanges, increasing the selling pressure. Uniswap [UNI] has seen a massive spike in volatility in the last 24 hours as the price oscillated between $8.83 to $9.63. The volatility came amid a rise in whale activity. Data from IntoTheBlock showed that in 24 hours, large transaction volumes surpassing $100,000 increased from 3.05 million to 21.39 million. This represented an over 500% increase. Source: IntoTheBlock If these large traders were buying, it most likely drove the recent surge. For the uninitiated, whales account for 51% of UNI’s circulating supply, while retail accounts for only 16%. Therefore, when whale transactions increase, it is bound to have an impact on volatility. Is Uniswap primed for a 30% rally? UNI traded at $8.93 at press time. The recent rally stalled due to buyer exhaustion after the price hit a 4-month high of $9.63. The volume histogram bars on the one-day chart showed that buying pressure was significantly high. The Relative Strength Index (RSI) has also increased to 62, suggesting that buyers were behind the bullish momentum. Source: TradingView Despite the price retracing, the Moving Average Convergence Divergence (MACD) showed that bulls remained in control. The MACD line has flipped positive alongside the histogram bars. For Uniswap’s uptrend to continue, it needs more buyer support. This could ignite a 30% rally towards the next resistance at the 1.618 Fibonacci level ($11.60). However, if there is no fresh uptick in buying activity, the uptrend will weaken. Traders should watch out for support at $7.34 as a drop below it could fuel the downtrend. Profit-taking presents headwinds Sellers were currently in a position to trigger a resumption of bearish…
Filed under: News - @ November 7, 2024 10:25 pm