The third trading week on the UNI market is held in a wide consolidation range of $3.2-4.2. UNI’s weekly and monthly charts do not shed light on the situation. They show the same probability of the fall scenario to $2.4 and growth continuation to $5.2. Despite the fact that UNI is a vice-champion in daily trading volumes among DeFi tokens, the current trading volumes have significantly decreased.
The locked funds amount in the Uniswap project according to the Defipulse.com chart substantially decreased after 15 November. At the time of writing, Uniswap ranks 5th place with TVL of $1.32 billion.
What is that – a loss of investors’ interest or a temporary lull before the rally continuation?
The culmination of the UNI price growth was at around $3.95. After testing this mark, buyers made several more attempts to continue the price growth, but these attempts ended in false breakouts and local loss of initiative:
As we can see on the chart, a local red channel of price movement was formed. Sellers tried to break it twice and so far the results are disappointing. The medium-term continuation of the UNI price growth will be possible if buyers keep this trend line, which is now around $3.3.
Also on the chart, we suggested another channel of price movement – black. As we see, its upper trend line formed a triangle, the breakout of which will show the medium-term trend of the UNI market.
The main UNI market volumes participants are concentrated in the range of $3.6-3.9
The unsuccessful attempt of buyers on 24 November to continue the growth trend showed that there are still a sufficient number of sellers in the market. Though, this number of sellers does not have enough power to reverse the direction of the price, even locally.
This fact became clear on 27 November, when sellers failed to fix below $3.2. As a result of fierce fighting, volumes in the UNI market began to decrease significantly. And the volumes decrease led to a decrease in volatility. If by 27 November the consolidation range reached 30%, now the consolidation corridor is 15%-17%.
The main scenarios of the UNI price movement
As the price is currently below the main liquidity zone, sellers have a better chance of breaking the mark $3.3. This mark is a critical point that stops sellers from building a strong momentum to $2.4.
However, the break of $3.9 will restore the reputation of buyers and will attract investors to enter the market with the first serious target of $5.2.
Let’s see how market participants will get out of this tense situation. One thing we know for sure. The winner will take everything, at least in the medium term meaning.