Uniswap delivered a somewhat fascinating performance over the past few weeks. That was the action within the past seven days as the altcoin saw consecutive bearishness. Uniswap’s performance over the week was logical after the altcoin recorded a massive upside following June’s bottom.
Precisely, Uniswap gained approximately 192% from June lows. A retracement or cool-down remains inevitable following such a move. It lost about 30% from its July peak to its recent low. While publishing this post, UNI changed hands at $7.09, following recoveries from the $6.89 24hr low.
The latter represents a crucial value zone since it stays at the 33.82% FIB retracement. The same area delivered support when prices saw relief retracement after mid-Juley. Also, it offered some footing early in May.
The brief retracement seen on August 19 might suggest that the 38.2% FIB line could serve as the following support mark. Failure to hold the level might see UNI stretching its bearish tendencies. Another support would appear around the $5.56 region, which matches the 23.6% FIB mark.
Multiple signals suggest the $6.89 value area will offer the latest downside support. For instance, Uniswap’s supply distribution by address balance shows whales aren’t selling. Some large holder cohorts have accumulated over the past few days.
Addresses with 10K – 1 million tokens have surged substantially even as the token saw declining prices. That indicated that there’s some accumulation at discounted prices. The surge in exchange outflows than inflows collaborated with this observation.
What it Means for Uniswap’s Near-Term Performance
The developments could see UNI rebounding from the present support (the 38.2% FIB mark). Bears stopped fighting as of August 19, and a brief surge shows the supports are steady. Also, the accumulation from on-chain indexes supported such an outcome.
Nevertheless, caution remains paramount as we enter the weekend. Remember, the market’s volatile nature could catalyze stretched sell-offs. That means UNI might still surrender the present foothold, depending on upcoming market forces.
Bears controlled the market while publishing this block, and downsides appear possible in the coming sessions. However, upcoming price actions will uncover everything. Stay tuned.