Uniswap [UNI] may slip to lower support levels as the lack of demand kicks in

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin [BTC] stumbled beneath the $20k zone earlier this week after intense selling pressure halted bulls’ hopes of a rally past the $20.8k resistance. The move southward for BTC meant most of the altcoin market also suffered. Uniswap [UNI] saw an 8% decline, and its bearish bias was not yet beaten. A move past $7 can instill buyers with far more confidence, but strong demand was not yet seen for UNI.

Source: UNI/USDT on TradingView

The technical outlook was bearish for UNI since the price slipped below $8.2 in mid-August. The past month saw UNI establish a kind of a range between $5.7 and $6.7. Since early September, the Relative Strength Index (RSI) has swung from 55 to 35 and back again, even though the price did not have a strong downtrend. This lent some credence to the idea of a range.

More importantly, the $6.88 resistance saw a bearish order block develop. Since the higher timeframe market structure was bearish, our analysis can look for selling opportunities as well. And one such has already presented itself in recent days. An entry after press time could offer much less reward for more risk, but in the coming days a buying opportunity could arise near the $5.5 zone.

Highlighted in cyan, this region has acted as support since late August. Barring the failure in mid-September, the $5.5 support belt has some significance. Yet, the On-Balance Volume (OBV) does not support any idea of a trend reversal. Hence any buys in the $5.5 region can be sold once UNI moved back toward the $6.5 resistance.

Source: Glassnode

The exchange netflow data from Glassnode showed steady outflow in late July,