UNI/USD - Be careful, decisive price action to come!
UNI has been ranging in this ascending channel for some time and right now we find ourselves at a crucial moment.
Price is kissing the support line and any drop under it will spell trouble for UNI. Why?
1. Bearish divergence on RSI!
2. MACD is bearish with a negative cross and bearish divergence!
3. Volume is dropping.
Why 2x?
Uniswap and Sushiswap are decentralized exchanges based on ETH network. What do they have in common? HIGH ETH gas fees / transaction fees. In excess of $100 for a transaction.. that is sure to put off retail and average buyers for using these exchanges. As long as ETH keeps going up in price, the fees will keep going up and these two decentralized exchanges will see lower volume and interest because of that. Hence their tokens will suffer.
But why is that such a big issue, I mean they are the largest DEX on ETH or in general... well... it just happens there is another DEX with 10x lower fees that is just as good... enter Binance Smart Chain (alternative to ETH) and Pancakeswap... which seems close to flipping Sushiswap and if the above problem continues that is likely to happen and Uni will suffer too.
coinmarketcap.com/rankings/exchanges/dex/
So bullish on Cake and bearish on Uni and Sushi? Yes. Binance, the largest exchange in the world is behind BSC and Pancakeswap is using that to its advantage...
BUT, all of the above is not as important as... price action! This is always the best indicator. If we fall here and support does not hold, then UNI will correct. Not good if you are long, be careful and secure profits!
If we stay in this channel we should be ok. We can also range if we exit the channel, that would be the best case scenario if support falls. To be seen.
Like and follow if you liked this idea! Also join my crypto community to stay in touch!
Price is kissing the support line and any drop under it will spell trouble for UNI. Why?
1. Bearish divergence on RSI!
2. MACD is bearish with a negative cross and bearish divergence!
3. Volume is dropping.
Why 2x?
Uniswap and Sushiswap are decentralized exchanges based on ETH network. What do they have in common? HIGH ETH gas fees / transaction fees. In excess of $100 for a transaction.. that is sure to put off retail and average buyers for using these exchanges. As long as ETH keeps going up in price, the fees will keep going up and these two decentralized exchanges will see lower volume and interest because of that. Hence their tokens will suffer.
But why is that such a big issue, I mean they are the largest DEX on ETH or in general... well... it just happens there is another DEX with 10x lower fees that is just as good... enter Binance Smart Chain (alternative to ETH) and Pancakeswap... which seems close to flipping Sushiswap and if the above problem continues that is likely to happen and Uni will suffer too.
coinmarketcap.com/rankings/exchanges/dex/
So bullish on Cake and bearish on Uni and Sushi? Yes. Binance, the largest exchange in the world is behind BSC and Pancakeswap is using that to its advantage...
BUT, all of the above is not as important as... price action! This is always the best indicator. If we fall here and support does not hold, then UNI will correct. Not good if you are long, be careful and secure profits!
If we stay in this channel we should be ok. We can also range if we exit the channel, that would be the best case scenario if support falls. To be seen.
Like and follow if you liked this idea! Also join my crypto community to stay in touch!
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