Uniswap’s Open Interest took a hit alongside prices in the past 24 hours. This reflected discouraged longs. But the more significant factor was the spot CVDDisclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.. The report highlighted the $4.5 level as one to short UNI at. This idea was vindicated but the volatility on 2 October saw prices jump to $4.67, which could have stopped some short-sellers.
The range extended from $4.03 to $4.68. The presence of the daily Order Block meant the chance of a bounce was good. The market structure and momentum were bearish, with the Relative Strength Index at 31. More importantly, the On-Balance Volume would need to see a bounce to reflect buying pressure. A continued decline in the OBV would reflect bearish dominance, which leads to the second scenario for UNI.
The Fibonacci levels showed southward extension levels at $3.9 and $3.65 as possible targets for UNI in the event of a drop below the OB. After a drop below $4, a retest of the $4-$4.1 zone could present an ideal shorting opportunity.The Open Interest took a hit alongside prices in the past 24 hours. This reflected discouraged longs. But the more significant factor was the spot Cumulative Volume Delta . This indicator has trended downward since 9 October.
It was unlikely that UNI could embark on a rally to the range highs if the spot CVD continued to stay flat or declined. Hence, unless this changes, traders can anticipate losses in the coming days.Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.