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The price of Uniswap (UNI) is attempting a rebound after a steep 66% drop from early March to mid-April. The upcoming correction could provide patient buyers with an opportunity to accumulate UNI before triggering a volatile surge.
Learn more: Uniswap’s founder hopes the SEC will not take enforcement action as on-chain data indicates an imminent price spike.
Uniswap Price Lays the Groundwork The Uniswap price initiated a mean reversion rebound between May 15 and May 26, propelling UNI up by 75% to a local high of $11.81, roughly coinciding with the midpoint of the 66% plunge from March 6 to April 13. An interesting observation is that there was a month-long accumulation phase before the 75% rebound. Ongoing adjustments could lead to the DEX token entering a similar sideways trend between $9.26 and $8.29.
As the Uniswap price rebounds from the aforementioned range, investors can expect it to challenge the $11.39 mark again. This key level turning into support would be a critical development, indicating that bulls are in control. In this scenario, UNI could soar nearly 13% and revisit $12.97. Overall, this move would represent a 45% rise from the midpoint of the previous surge.
The Relative Strength Index (RSI) is nearing a retest of the 50 average line within the daily timeframe, supporting the prospect of Uniswap price accumulation and suggesting a potential rebound for UNI. The Momentum Oscillator Indicator (AO) is also above its zero line average, hinting that bullish momentum is in control.
UNI/USDT 1-Day Chart
Supporting this uptrend is Santiment’s 30-day Market Value to Realized Value (MVRV) metric. A value of 3.88% indicates that investors who purchased UNI in the past month have an average profit of 3.88%. Even if these holders decide to sell, it could negatively impact the bullish outlook for Uniswap’s price. Conversely, when the MVRV metric is below the zero line, investors tend to accumulate.
On the other hand, if the Uniswap price turns the $8.29 support within the daily timeframe into resistance, it would invalidate the bullish argument and could potentially restart the accumulation phase.
In some cases, the Uniswap price might revisit the weekly support at $7.56, which is about 8% away from $8.29.
Sentiment: Neutral
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