The last trading month on the Uniswap (UNI) market was quite rousing for investors. The price movement range was almost 100%. The wild ambitions of both sides of the UNI market have been clearly visible since 20 February.
In the previous article, we introduced two main theses that were fulfilled. The first was to check the strength of buyers. At the daily chart in the range of $17-18, we see a strong liquidity zone, which became a foothold for new growth momentum.
Fragile Sellers And The Range of $33-34
As you can see in the chart, on 23 February, sellers again tried to break this range. Though, buyers’ potential is so strong that the daily candle closed with a large pin-down, without touching the liquidity range. This fact shows the strength of buyers, which was well realized within 30 days.
The second thesis is a test of the range of $33-34. In fact, buyers cannot break this range for a month. The UNI price is constantly pressing below the liquidity zone. Therefore, we believe that UNI market has reached a critical point.
Buyers are more likely to continue the growth trend, leaving the usual trend channel. First of all, on the chart we see that sellers do not offer any resistance.
If we pay attention to the trading volumes, the only aggressive attack by sellers was on 22-23 February. On this day, the BTC market began its correction and dragged the entire crypto and DeFi market behind it:
Bitcoin Correction shows Uniswap (UNI) Market is Strong
As we see in the chart, the aggressive correction in the BTC market lasted from 22 to 28 February. All this time, the BTC price updated the local low.
The UNI market, meanwhile, after 23 February began to consolidate and did not update local lows anymore. This fact indicates the good potential for continued growth in the UNI market and the strength of buyers.
In addition, if we look at the UNIBTC pair chart, we see a powerful green liquidity zone, which buyers managed to win.
At the moment, the UNIBTC price is fixed above this range and is preparing to update the all-time high.
An alternative scenario in the UNI market and a retest of the range of $17-18 will be possible if sellers manage to fix themselves below $28.5-29.5. In this case, the current initiative of buyers to update the all-time high will be interrupted and buyers will move to defenсe.