Market Overview for Uniswap/Tether (UNIUSDT)

Summary
• Price tested key support at $5.80 before rebounding amid moderate volume.
• Bearish momentum strengthened mid-session, with RSI nearing oversold territory.
• Volatility surged early, but compressed later as price consolidated near $5.90.
• A large 5-minute bearish engulfing pattern formed at 18:30 ET, signaling short-term weakness.
• Turnover spiked during the morning selloff, suggesting strong selling pressure around $5.85.

Uniswap/Tether (UNIUSDT) opened at $5.971 on 2026-01-04 at 12:00 ET, reached a high of $6.04, a low of $5.768, and closed at $5.817 on 2026-01-05 at 12:00 ET. Total volume for the 24-hour period was 3,569,384.28 and notional turnover amounted to $20,856,408.38.

Structure & Key Levels

The price formed a distinct bearish channel on the 5-minute chart, with resistance clustering around $5.92–$5.95 and support emerging at $5.85–$5.87. A large bearish engulfing pattern formed at 18:30 ET, confirming short-term bearish bias. The 24-hour low at $5.768 acted as a temporary support, halting further decline for several hours.

Trend and Moving Averages

The price remained below its 20- and 50-period moving averages for much of the session, reinforcing a short-term downtrend. A brief rally above $5.95 brought price into overbought territory on the RSI, but momentum failed to hold, and a retest of the 50-period MA failed, suggesting a possible continuation of the downward bias.

Momentum and Volatility

Momentum weakened significantly during the afternoon and evening, with RSI hovering near oversold levels by the close. MACD showed bearish divergence mid-session as price reached a 24-hour high without a corresponding surge in momentum. Volatility spiked early in the session but compressed in the final hours as price stabilized around $5.85–$5.88.

Volume and Turnover

The largest volume spike occurred at 21:45 ET, with 136,672.53 units traded as price dropped from $5.834 to $5.785, signaling a strong bearish move. Turnover confirmed the strength of this move, with a large notional value of $793,480.11 recorded. Price-volume divergence occurred in the late session, as volume declined despite continued price consolidation.

Fibonacci Retracements

On the 5-minute chart, price retested key Fibonacci levels from the $5.80 to $5.95 swing, including a 61.8% retracement at $5.87–$5.88. These levels provided temporary support and resistance, suggesting possible continuation of the range-bound pattern unless a breakout occurs.

The market may consolidate near $5.85–$5.90 in the next 24 hours as it tests the 50-period MA and looks for a breakout. Traders should watch for a break of the recent low at $5.768 or a decisive move above $5.95 to confirm the next directional bias, but volatility remains constrained, suggesting caution in aggressive long/short positioning.