UNI’s Price Dance: Can It Outwit the $4.2 Resistance or Just Trip Over Its Own Feet?

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With the broader market recovering, Uniswap [UNI] staged a comeback from a slip below $3, which is about as thrilling as watching your neighbor’s cat chase a laser dot-chaotic, predictable, and slightly less profitable.

Previously, UNI had slipped to a four-month low of $2.8, which is just one decimal point away from a free slice of pizza if you’re in the wrong part of the world. However, as the market showed signs of recovery, UNI successfully defended $3 and reached a high of $3.5 before a mild pullback, proving that even crypto has a sense of irony.

At the time of writing, UNI traded at $3.49, up 9.2% on the daily charts. Over the same period, the market capitalization rebounded above $2 billion. For context, that’s enough money to buy a small island-assuming you don’t mind the local fauna judging your life choices.

Uniswap Buyers Buy the Dip

After UNI breached $3, investors entered the market with the enthusiasm of a toddler at a candy store. Buyers rushed to scoop up a discount, as if someone had just announced that Bitcoin would be phased out in favor of Monopoly money by next Tuesday.

CryptoQuant data showed that Uniswap recorded 3.8 million UNI in Exchange Outflows on February 6th. By press time, outflows were 234k UNI-a drop so significant it could’ve powered a Tesla factory for a week. Or maybe just a really long Zoom meeting.

With outflows dominating the market, Exchange Netflows remained negative. Between February 6th and 7th, Uniswap saw -$6.5 million in Spot Netflow, which is about the same amount I’d spend if I ever decided to buy a yacht. (Spoiler: I didn’t.)

Coupled with that, the Buyer vs. Seller Strength Indicator on Tradingview confirmed this market trend. Buyer strength skyrocketed to 89 before falling to 29 at press time, which is less dramatic than my dating app matches.

The surge in buyer strength drove the market to recover from recent losses. Meanwhile, dip buyers cashed out, elevating seller strength to 70 at press time. It’s a bit like a game of hot potato, except the potato is a volatile asset and everyone’s screaming “I TOLD YOU SO” in all caps.

These market conditions showed fierce competition between buyers and sellers for market control, which is about as civil as a group of toddlers fighting over a crayon box.

UNI at Crossroads, Which Way?

Uniswap bounced back from the recent dip as buyers stepped in to “buy the dip,” a phrase that sounds like financial advice but feels more like a dare. However, upside momentum slowed as sellers cashed out, while buyers’ appetite diminished faster than my patience for crypto jargon.

These market conditions suggested an ongoing battle for market control between buyers and sellers. For now, buyers have shown strength, but sellers remain active-like a passive-aggressive email thread that refuses to end.

In fact, the downside momentum remains intact as evidenced by the momentum indicators. For instance, the altcoin’s Directional Movement Index (DMI) fell to extreme oversold levels as of writing, while its negative index rose significantly. If charts could talk, they’d probably ask for a raise.

A rising ADX while +DI declines indicates strong downside momentum, with sellers in an overwhelming chokehold on the market. Therefore, recent buyers’ attempts have proven inadequate to sustain a trend reversal, which is less surprising than finding a parking spot in Manhattan at 8 a.m.

As such, these conditions point towards the continuation of the prevailing trend. If sellers continue to dominate, UNI is likely to decline again toward $3.0, which is just enough to buy a cup of coffee and wonder why you ever trusted a meme coin.

For a trend reversal, buyers must push the daily close above the EMA20 at $4.2, thereby incentivizing the market to move above $4.9. If they succeed, I’ll believe in miracles. Until then, I’m just here, sipping lukewarm tea and wondering if “the market” is a sentient being with a cruel sense of humor.

Final Thoughts

  • UNI bounced back from a four-month slip and jumped to a local high of $3.5 before a mild pullback-like a rollercoaster that forgets it’s supposed to be fun.
  • Uniswap rebounded as buyers stepped to buy the dip, but bearish structure remained stubbornly intact. Because nothing says “confidence” like a market that won’t stop testing your patience.

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2026-02-08 01:36