Disclaimer: The information presented does not constitute financial, investment, business or other advice and is the opinion of the writer only.
- UNI dropped to the 50% Fib support level after BTC broke through $23.86K.
- UNI saw widespread hoarding.
In addition to macroeconomic headwinds, Uniswap (UNI) looks ready for expansion and appreciation. Overall, UNI has gained 50% since January. However, it faced a 10% correction after BTC’s strong price rejection at $25,000.
To read Uniswap (UNI) price forecast 2023-24
BTC has seen fluctuations in recent days due to general market uncertainty. However, the Personal Consumption Expenditure (PCE), scheduled to be released on Friday, February 24th, may suggest whether the March FOMC meeting will be dovish or hawkish. As such, the release could provide possible price direction.
Can the 50% Fib support level hold?
Source: UNI/USDT on TradingView
The sharp drop from the ascending (white) channel was controlled by $6,234. This allowed the bulls to launch an 18% rally before another correction took them out of the market.
At press time, the 50% Fib support level of $6,859 briefly held back the decline. If the support level continues to hold and BTC rises to $25,000, the longer-term bulls could hit the Fib levels of 61.8% ($7,039) or 78.6% ($7,295).
Alternatively, bears can make moves if the 50% Fib level is breached, BTC dips below $23.5K and the drop is confirmed. Bears can benefit from short selling opportunities at Fib levels of 38.2% ($6,680) or 23.6% ($6,457).
The Chaikin Money Flow (CMF) moved sideways above the zero line, indicating that bulls have limited leverage. Furthermore, after reaching the middle level, the RSI exhibited a slight increase, showing that the market structure was close to neutral; therefore, care must be taken.
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UNI has seen an expansive accumulation phase that could bolster a longer-term rally
Source: Sancimento
According to Santiment, UNI has seen accumulation across the network, as shown by the increasing Average Coin Age of 180 days. This suggests a potential upside for UNI in the longer term. Furthermore, weighted sentiment remained positive, indicating that investors were bullish on the asset despite the market downturn at the moment.
Long-term holders, on the other hand, have several benefits from the recent uptrend. In particular, six-month holders profited from the recent rally, as shown by the positive 180-day MVRV. However, quarterly holders have suffered losses since the end of last month.