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- Ali revealed in an X post that there are 2 supply walls currently standing in the way of a UNI breakout.
- According to the post, UNI has formed a strong support wall at $4.
- At press time, indicators suggested that buyers were losing strength on UNI’s daily chart.
The cryptocurrency trader and analyst Ali revealed in an X post yesterday that Uniswap (UNI) will need to overcome two supply walls before it can enter into a bullish breakout. According to the post, the altcoin established a strong support floor at $4.
Even though #Uniswap built a key support floor at $4, there are 2 supply walls it needs to overcome to signal a bullish breakout.One is at $4.23, where 7,000 addresses bought 14.24 million #UNI, and the other one is at $4.45, where 2,000 addresses hold 10.28 million $UNI. pic.twitter.com/BwtxWHtMJF— Ali (@ali_charts) October 29, 2023
The first barrier that UNI will need to break above is the resistance level at $4.23, noted the analyst. At this price point, there are 7,000 addresses that bought 14.24 million UNI, according to on-chain data. Thereafter, the cryptocurrency will need to surpass $4.45, which is where 2,000 addresses currently hold 10.28 million UNI.
Daily chart for UNI/USDT (Source: TradingView)
On October 24, UNI attempted to break above the $4.450 mark mentioned in Ali’s post. However, it was rejected by this price point – causing it to break below the $4.230 level in the 48 hours that followed. Sellers then continued to exert pressure on the altcoin’s price, which led to it breaking below the 9-day EMA line as well.
Over the past 3 days, UNI rebounded off of the $4 support. Traders identified this as a bullish development and boosted the cryptocurrency’s value back above the 9-day EMA line, which was situated at $4.119 at press time.
The levels highlighted in ALI’s post are significant. This is due to the fact that the $4.450 mark was around the same point as the upper level of a medium-term negative price channel.
Traders and investors will want to take note of the fact that the daily RSI line was sloped towards oversold territory. In addition to this, the RSI line was closing in on the RSI SMA line. These technical flags suggest that buyers were losing strength on UNI’s daily chart.
At press time, CoinMarketCap indicated that UNI was up 0.54%. This boosted the altcoin’s price to $4.12. UNI had reached a 24-hour high at $4.21, but had since retraced to trade at its current level. Subsequently, UNI was trading closer to its daily low of $4.11.
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