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- UNI’s recent uptrend showed potential support as several addresses made profits.
- Whale activities and the prevalence of net-flow surges indicate the possible presence of bull traps.
Uniswap [UNI] The price action has recently turned to the upside, sparking discussions about the longevity of this uptrend, especially since the bulls have pulled several bullish traps since the beginning of the year.
Let’s look at this one.
Given the recent upward trend in UNI Price, the current structure shows a potential support level as many addresses take profit.
Source: IntoTheBlock
However, the presence of a large portion of cash holders may also mean public resistance. These investors may look to exit at breakeven points, especially if they fell into previous bullish traps.
The current uptrend may be vulnerable to reversals if whalers decide to take profits, resulting in a sudden price drop.
Whale dominance indicates that the market is strongly influenced by the actions of some at the time of publication, which can lead to volatility.
Source: IntoTheBlock
Net flow spikes can be a sign of bull traps, where sudden price spikes tempt retail investors to buy, only for whales to sell their holdings, causing the price to collapse.
Source: IntoTheBlock
Trading patterns in Uniswap
The 200 period moving average appears to be acting as a dynamic resistance level. Also, UNI tested this level several times and pulled back, suggesting that sustaining gains above the moving average may be difficult in the near term.
The widening of the Bollinger Bands around the middle of the chart indicates an increase in volatility. However, a return to narrower ranges indicates stability.
Source: Trading View
Also, UNI saw a double top (bearish reversal pattern) around the $10.15 price point, indicating a potential pullback.
The double bottom (bullish reversal pattern) indicates strong support levels that the price has tested twice without falling. It is identified around the $9.85 level, which indicates a high probability that this pattern will hold.
Is your wallet green? Check the Uni profit calculator
The frequent change in trend indicated by the HH, HL, LH and LL signs, combined with the close proximity of the double top and double bottom patterns, means high intraday volatility.
This is the case in markets that are affected by news or important trader activity.
