Uniswap [UNI] After briefly retreating from the breakout of its supply zone, it moved to $7.50. Retail buying increased in tandem with spot purchases. This broadened the participation of the market.
Has the bullish position made UNI’s rally less stable?
Are UNI buyers gaining control?
UNI Open Interest climbed from $491 million to $501 millions in the last 24 hour. It is possible that the increase was due to traders increasing their exposure when UNI reached resistance.
Bulls have an edge in the derivatives markets because 60% of all positions are long. This strong long-bias could lead to increased liquidation risk if UNI’s momentum weakened.
Now, that’s not true. Uniswap orders for retail have increased as well, which adds another layer to the demand that is driving this recovery. The increasing buyer dominance on the spot market buying could give the rally more support and reduce its reliance on leveraged positions.
Is it possible to claim $7.50 back from UNI?
The bulls of UNI continue to aim for $7.50 on the daily chart. While bullish pressure was building, the token continued to trade above its Exponential Moving Averages.
This price level also anchors an enormous liquidity cluster valued at over $376,000,000, so it is considered a major target by the players on the market. The breakout will gain momentum if the buyers absorb the offers and UNI rises above $7.50 in a decent volume of spot trades.
The increased risk of a bearish market is relevant for UNI owners. The breakdown of $7.50 could result in a large number of leveraged liquidity and drive UNI to the next levels of support.
Even after taking the recent positive sentiment into account, the technical outlook for the token still appears promising. This is reflected in the rising network open interest, the dominance of the long position on the market and the increase buyers.
Final Summary
- Open Interest surpassed $501 Million as UNI approached $7.50.
- 60 % of long positions were in favor of bulls, while liquidation risks increased.
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Source: ambcrypto.com
