Unfortunately, the activity and aggressiveness of the UNI market price still remain only in the memory of investors. The protracted consolidation that began in February 2021 will not let go of the UNI price for new growth momentum. During the previous 3 trading weeks on the Uniswap market, the situation has not changed.
Buyers’ loss of control over the mark of $35 has increased the chances of a strong correction in the UNI market.
Buyers Are Not Interested In Aggressive Purchases
As we can see in the daily timeframe, the main critical range of $30-31 remains relevant. However, looking at low trading volumes during local attempts by buyers to continue the growth trend makes one think about new UNI price support zones. In addition to the unstable BTC, a fly in the ointment also is the UNIBTC price chart:
Note that from the previous analysis, the price continues to trade within the global wedge. The UNIBTC historical high update through a false breakdown confirms the high concentration of sellers on historical highs. Therefore, a local price fall of at least 15-17% is highly likely.
If we add to these facts another interesting situation in the BTC market – it becomes clear that a temporary correction in the UNI market is inevitable.
BTC May Once Again Start Sucking The Life Out Of The DeFi Market
What is interesting about the situation in the BTC market? If you analyze the daily chart, it becomes clear that buyers have reached the liquidity zone – the previous historical high:
The trading volumes show that buyers will not give up this range without a fight. Nevertheless, the reversal of the BTCUSDT price may negatively affect the UNI market this time.
The fact is that the BTC dominance has fallen to the level of 2018. It was from the 40% indicated that the powerful BTC growth wave began. And it took away all the capital of the cryptocurrency market (including the DeFi space).
Only between the pauses of BTC growth in 2020 did DeFi projects feel free and able to show what they are capable of.
Therefore, any vector movement of the BTC price will negatively affect the UNI market. In this case, after breaking the range of $30-31, we will expect the next mark of $22. Continuation of the UNI price growth to $56 is possible only after the price fixes above $35.