Uniswap: Sell-Side Liquidity Sweep and Key Resistance Zone

Uniswap (UNI) recently executed a Sell-Side Liquidity sweep, during which price moved below several weeks’ lows. This action cleared Sell Stop orders resting beneath those levels, absorbing Sell-Side Liquidity and prompting a potential shift in market structure. While such a sweep often marks an important inflection point, it remains uncertain whether this structural change will support further upside or whether price will revert to bearish continuation.

The Resistance Zone

At present, UNI is encountering a critical resistance zone, which is clearly marked in orange on the daily chart. This level represents a significant barrier where price has struggled to break through in the past. The next key point for UNI could be how it interacts with this resistance. If the price fails to break above this zone, it could likely shift the market back into a bearish phase, with the next logical target being the Sell-Side Liquidity from October of the previous year. Such a move could suggest that the bearish market structure is still intact, and price could fall further, seeking that liquidity from last year’s sell-off.

 

 

 

However, if UNI closes above the resistance level, it could signify a Change In State of Delivery (CISD), moving the market into a more bullish phase. This could increase the likelihood of a move toward Buy-Side Liquidity levels.

 

Watch for the Confirmation

The next move for UNI is dependent on how the market reacts to this key resistance zone. If price fails to close above the resistance, the probability will shift toward a bearish scenario, with potential downside toward Sell-Side Liquidity from last October. If price closes above resistance, the probability will favor a bullish continuation, targeting higher Buy-Side Liquidity levels.