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- Bulls looked to rally from the $4.87 support level.
- CMF stood at +0.15, at press time, to signal more capital inflows.
Bitcoin’s [BTC] 1.1% gains in the past 24 hours could spur a significant rally for Uniswap [UNI]. Bulls held firm on the first test of the key $4.87 support level to rally back above the $5.21 resistance. However, the general market correction forced the price back to the support level again.
Read Uniswap’s [UNI] Price Prediction 2023-24
Recent price action on UNI signaled bulls could be looking to use the defense of the support zone as a springboard for a bullish rebound.
Bulls defend $4.87 support level again.
Source: UNI/USDT on Trading View
The $4.87 support level has been key for Uniswap buyers over an extended period. Historically, this level has acted as a strong base for previous bullish trends in November and December 2022.
The four-hour timeframe showed that the first test of this key support zone on 8 May led to a mild rally that took price up to $5.40. However, the strong bearish trend pushed prices back down to the major support level on 24 May. As of press time, buyers had defended this level again, with prices inching toward the $5.21 resistance level.
The on-chart indicators hinted at the possibility of a bullish rebound. The RSI climbed strongly out of the oversold zone and stood at the neutral 50 mark, as of press time. The CMF showed significant capital inflow to the markets with a reading of+0.15.
An increase in volume and buying pressure will see bulls target the $5.21 and $5.72 resistance levels in the short term. Alternatively, sellers could continue Uniswap’s bearish trend with a successful retest and break of the $4.87 support level.
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Buying pressure on the rise in the futures market
Source: Coinalyze
On-chain metrics supported the possibility of a bullish reversal. Data from Coinalyze showed a spike in funding rate on the four-hour timeframe. This signaled the intent of market speculators to push for more bullish price gains.
The sentiment was also echoed on the long/short ratio, with buyers holding a 52.96% advantage. Traders should monitor BTC’s price action, as more upside for the king coin could spur Uniswap higher.
Source: Coinglass
