The Ethereum-based decentralized exchange Uniswap (UNI) has seen a good amount of network activity with strong selling pressure in recent times. However, popular crypto analyst Ali Martinez recently reported that Uniswap could be gearing up for a trend reversal very soon.
Uniswap Selling Pressure Exhausting
Popular crypto analyst Ali Martinez reported that Uniswap ($UNI) is on the verge of a potential breakout as a substantial 87.56% of UNI holders are currently “Out of the Money.” Investors are witnessing a scenario where selling pressure has seemingly worn out, and a robust support level has formed at approximately $4, leading to renewed optimism among UNI stakeholders.
The analyst further added that notably, there is a notable increase in the count of substantial $UNI transactions, indicating a surge in activity from institutional investors and prominent UNI holders at the current price marks. These significant players might be either making strategic investments or taking positions in anticipation of an impending breakout by Uniswap.
Key Levels to Watch for UNI
At press time, the Uniswap price is trading 1.46% up at a price of $4.16 and a market cap of $2.4 billion. For now, UNI has been holding its key support level at $4.
Analyst Ali Martinez explained that although Uniswap has established a crucial support level at $4, there remain two significant supply walls that must be surmounted to indicate a bullish breakout. The first barrier stands at $4.23, with 7,000 addresses collectively holding 14.24 million UNI tokens, while the second obstacle is at $4.45, where 2,000 addresses have accumulated 10.28 million UNI tokens.
The Relative Strength Index (RSI) implies the possibility of an 8% correction to $3.70 in the event that the $4.02 support level falters. A surge in selling pressure could drive UNI down to $3.35, resulting in a significant 17% decline.
However, despite this bearish scenario, should buying pressure push UNI to a closing price above $4.38, it could negate this outlook and potentially trigger a 15% upswing to $5.04. This highlights the inherent volatility and unpredictability of the cryptocurrency market, underscoring the importance of investors staying vigilant and well-informed about these rapid fluctuations
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