As early as 7 weeks on the UNI market, the price cannot choose the next medium-term price trend.
UNI spends most of its time in the range of $3.44-3.83. All attempts to break this range up or down end in large pins on the weekly timeframe:
Buyers struggling with the consequences of the UNI market sharp growth
In early November the UNI price rose by 120% in 9 days. A large number of investors began to fix their profits. That’s why buyers have to buy out the entire offer of sellers.
However, if we look at the picture in detail, it becomes clear that the critical points that motivate UNI market participants to act are outside the range of $3.4-3.83. Starting from 14 November, sellers became more active after the test of $4.15-4.25.
Each test of this range sharply changed the UNI price local trend by 5-10 days. The same erogenous zone can be found on the chart for buyers. Touching the mark of $3.11 three times, the price sharply jumped by 30-40%.
The UNI market is the main stop of the DeFi ecosystem
The last attack of sellers on 23 December showed a good willingness of buyers to keep the price. If we analyze other DeFi projects, which gladly fell by 40-50%, UNI buyers kept their front going with a drawdown by only 20%.
The UNI daily trading volume among DeFi tokens is second only to LINK – and amounts to $617,186,046. In fact, since 16 December, trading volumes are above average.
On the one hand, this is a good signal that the market is alive. Though, for the most part, after a sharp momentum, consolidation must be at reduced volumes to continue the trend. High trading volumes may indicate a phase of distribution and the formation of a foundation for price reversal.
The last trading days on the market show that buyers are not too strong:
The mark of $3.83 again became a problem for buyers and on 28 December the price could not fix higher. Today buyers’ attempt to attack this mark still looks unsuccessful.
The local trend of buyers from 23 December is at risk of a break. The critical point that can stop the UNI price on the way to test $3.11 is $3.44.
Given that the BTC dominance in the cryptocurrency market continues to grow for UNI and other tokens it is very difficult to find liquidity for growth and repeat the feat of DOT. Therefore, until the situation with BTC changes – the consolidation 40% range of UNI will continue to exist.
Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.
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