Market Overview for Uniswap/Tether (UNIUSDT): Volatility and Reversal Signals Emerge

Summary
• Price dipped to 5.623 before rebounding, forming a bullish engulfing pattern near 5.66.
• RSI hit oversold levels below 30, suggesting possible short-term reversal.
• Volatility expanded with a 5.77 high, but volume failed to confirm the move.
• Bollinger Bands show widening as price tested the upper band twice with mixed results.
• Volume increased sharply in late ET hours, coinciding with a retest of key support.

Uniswap/Tether (UNIUSDT) opened at 5.787 on 2025-12-31 12:00 ET and closed at 5.675 on 2026-01-01 12:00 ET, reaching a high of 5.775 and a low of 5.623. Total volume was 1,160,280.79, with a notional turnover of ~6.59 million USD.

Price Action and Structure

Price action displayed a bearish start, with a sharp decline to 5.623, followed by a strong rebound into the 5.66–5.70 range. A key bullish engulfing pattern formed at 5.66, suggesting short-term buyers stepped in. The 5.72 level acted as resistance, with two failed attempts to push above, signaling potential consolidation. A notable bearish divergence appeared between price and volume near 5.75, raising questions about the sustainability of upward moves.

Trend and Momentum

Short-term momentum, as captured by MACD, showed a weakening positive trend, with the histogram narrowing after the 5.75 high. RSI fell into oversold territory below 30, indicating potential for a near-term bounce. However, the lack of volume confirmation during the 5.76–5.77 highs suggests bearish caution.

Volatility and Bands

Bollinger Bands expanded significantly, with price briefly testing the upper band twice. The most recent touch at 5.775 was followed by a sharp pullback, reinforcing that volatility is still a key driver. The 5.64–5.66 corridor remains a critical range for near-term support, with price showing repeated interest in this level.

Volume and Turnover

Volume increased notably during the late ET hours, especially after 2026-01-01 05:00, as price retested 5.62–5.65 support. Turnover aligned with this activity, suggesting liquidity was present during the rebound. However, volume flagged divergence during the 5.75–5.77 rally, weakening the bullish case.

Fibonacci and Key Levels

A 38.2% retracement of the 5.623–5.775 swing fell near 5.68–5.69, where price found support. The 61.8% level at ~5.65 also served as a floor, with price bouncing off it twice. Daily Fibonacci levels from the 2025–2026 range show key resistance near 5.73 and support at 5.59.

Looking ahead, buyers may test 5.72–5.73 resistance again, with a break above likely to trigger further upside. However, a retest of 5.62–5.64 support could trigger renewed selling. Investors should monitor volume closely for signs of confirmation or divergence in the next 24 hours.