Uniswap [UNI] falls to key support, can 50% Fib level prevail?

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Apart from macroeconomic headwinds, Uniswap [UNI] seems ready for expansion and appreciation. Overall, UNI has appreciated by 50% since January. However, it faced a 10% correction following BTC’s sharp price rejection at $25K. 

Read Uniswap’s [UNI] Price Prediction 2023-24

BTC has seen fluctuations in the past few days because of overall market uncertainty. However, the Personal Consumption Expenditure (PCE), set to be released on Friday, Feb. 24, could hint at whether the FOMC meeting in March will be dovish or hawkish. As such, the release could provide a potential price direction. 

Source: UNI/USDT on TradingView

The sharp drop from the rising channel (white) was kept in check by $6.234. It allowed bulls to launch an 18% rally before another correction knocked them out of the market. 

At press time, the 50% Fib support level of $6.859 has briefly contained the drop. If the support level continues to hold and BTC surges toward $25k, long-term bulls could target 61.8% ($7.039) or 78.6% ($7.295) Fib levels. 

Alternatively, sellers could make moves if the 50% Fib level is breached, BTC drops below $23.5k, and the downwsing is confirmed. Bears could benefit from shorting opportunities at 38.2% ($6.680) or 23.6% ($6.457) Fib levels. 

The Chaikin Money Flow (CMF) moved sideways above the zero line, indicating that bulls had limited leverage. Moreover, after hitting the mid-level, the RSI exhibited an uptick, showing the market structure was almost neutral; hence, caution should be exercised.

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Source: Santiment

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