UNI Price Sleeps and Gathers Strength Before the Spring Rally
The phenomenal growth of the UNI price, which began in late December 2020, significantly slowed down. Raising the price by almost 600%, buyers paused.
Since the beginning of February, sellers have been trying to impose their game on the UNI market, but they can’t cope with the problematic range of $16.8-17.8.
As you can see in the chart, sellers have already tried to break this range three times. However, every time the price tests the liquidity zone of $16.8-17.8 there is a sharp price jump up.
Daily Trading Volumes Significantly Decrease
Since the end of January, trading volumes in the UNI market have substantially fallen. At the time of writing, the daily trading volume is $641,674,824. Though, even such a result allows the UNI market to take 3rd place in the ranking of the Defi coins.
The current protracted consolidation is very intriguing. The fact is that after a 3-week price stop in a relatively narrow range usually begins a strong movement. The main task is to skilfully determine in which direction.
At first glance, it may seem that the UNI price forms the well-known “head and shoulders” pattern.
Although, given that sellers managed to correct the previous growth wave by 38.2%, we still reject this scenario as the main one. Such a weak correction suggests that the main growth trend is still incomplete, and the current price stop is temporary:
The key to buyers’ success is control over the range of $16.8-17.8
Keeping the range of $16.8-17.8 under control will allow buyers to continue to grow with a target of $33-34.
UNI’s good position in the cryptocurrency market was significantly strengthened by the BTC growth. In fact, by launching a new rally on 28 January, Bitcoin has helped UNI accelerate its trend and successfully update its all-time high.
However, if you look at the UNIBTC chart, the historical high still remains intact:
Sluggish Correction and Growth Prospects of BTC to Help UNI market
As we see, since 13 February, sellers are trying to actively sell UNI. Nevertheless, all this happens at low volumes and buyers are actively trying to slow down the fall.
Depletion of sellers may continue until the end of this week. In a successful scenario, new growth momentum in the UNI market should begin in the new week.
The main two conditions are to keep Bitcoin above $50,000 and maintain control over the range of $16.8-17.8.
In the worst case, sellers will quickly lower the price to $13-15, where the price will stop for gaining the positions for further growth.
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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