Uniswap (UNI) extended its bullish performance with another break of market structure on the daily timeframe on Thursday, 27th August. The DeFi altcoin gained 6.89% during the day, rising from $4.38 to $4.68.
However, UNI faced rejection after climbing further to $4.84 in the hours before press time. It was trading at $4.57 at the time of writing.
Spot demand supports Uniswap’s price gains
Coinalyze data showed that open interest had cooled slightly, while the funding rate remained close to neutral. Encouragingly, the Spot CVD had risen in recent days, highlighting strong spot demand behind the latest price gains.
Whale accumulation and steady UNI token burns have also supported the scarcity narrative. The key question is whether spot demand and these bullish factors are strong enough to sustain Uniswap’s uptrend.
Uniswap’s bullish market structure
In May, UNI formed a lower high at $4.17 before a wave of selling pushed its price down to $2.31 by early June. By the end of July, the previous high had been surpassed, establishing a bullish swing structure.
A pullback to $3.18 in mid-August was followed by another rally above the $4.57 local high, reaffirming the bullish structure.
The On-Balance Volume (OBV) indicator has trended higher since July, reflecting steady buying pressure. Demand accelerated notably in mid-August, while the momentum shift over the past two weeks was also visible on the MACD and Awesome Oscillator.
UNI traders eye a potential pullback
The dense liquidity zones above $4 that had formed over the past month were swept. UNI also approached the $5 level in recent hours, taking out another cluster of short liquidations.
A noticeable pocket of long liquidations may now be developing around $4.
Based on the daily chart, the bullish price targets at $5.11 and $5.97 remain valid. However, UNI could enter a consolidation phase in the coming days as new liquidity pockets build for the price to target.
Uniswap maintained a bullish structure on the daily price chart at press time. The sweep of overhead liquidity pockets, followed by rejection below $5, could lead to short-term consolidation.
Source: cryptonews.net
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