Uniswap [UNI] Securitize announced recently was in news. AMBCrypto announced that BlackRock tokenized treasury BUIDL product will be integrated into AMBCrypto’s smart protocol.
Recently, Bitwise Spot ETF was also reported. Price reaction was immediate after BUIDL news. UNI’s price rose just under 40% within two hours. But a dramatic correction took place later the same day.
The token’s price had risen dramatically, indicating a “sell-the-news” type event. This high volume surge in price exhausted bulls who were hoping for a big gain. The bears sold their positions in full force.
Then, short squeezeDemand dried up. Long positions were closed. This falling OI showed that the shorting was not market wide and aggressive. There was still no fuel for the market to rise and by press time there wasn’t any more. Uniswap Prices are once again lower than the previous year. $4.2 key EMA resistance.
Can Uniswap reclaim its $4.6 highs?
Source: Glassnode
Cost Basis Distribution revealed that a large amount of UNI were purchased for prices below $6. The cost basis of another large portion was $7.3 to $7.4.
These cost-based areas are often indicative of strong resistance/support levels. This was the closest supply area at $3.95 – $4.
The rally from $4.6 to $4.61 was probably used as a way to get UNI sold at a break-even point or modest profit. Swing traders and investors can continue to be bearish until the $4 supply zone has been reclaimed.
Source: UNI/USDT TradingView
The chart for one day shows the trend has been bearish since November. Price set new lows, and it showed that the price was not able to surpass local highs in the last six weeks. Another sign of seller dominance could be this.
According to reports, trading volumes on the decentralized exchange increased in the first two weeks of February. DeFiLlama data. The trend reached its peak on 5 February, with $5.22 Billion. Since then, the volume has again fallen to mid-January levels – Reaching $842 million on 13 February.
Reduced trade volumes will lead to a lower burn rateIt is not likely that this will have an impact on price until the volume remains low for longer.
Final summary
- Last week’s rapid rally followed by an immediate setback was a classic. “sell the news” type event.
- The downward trend of UNI is likely to continue despite positive developments in the ecosystem.
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Source: ambcrypto.com
