Although Polkadot, Uniswap and AAVE have recovered from their multi-month lows of February 24, broader sentiment has fallen into extreme fear territory at the time of writing. Uniswap is showing encouraging signs as it hovers near the upper limit of its Bollinger band. However, like AAVE, Uniswap depicts a weaker directional trend.

Boca (DOT)

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Source: TradingView, DOT/USDT

Since the new highs of November 2021, DOT shorts have been preventing the bulls from turning things around. The alt has fallen more than 74% (since Nov. 4) as it hit a 7-month low on Feb. 24.

The recent bearish rally marked the downside channel while alt worked its way through the 20 SMA (red). In the past few days, alt recovered the crucial $16 mark after breaking out of the channel. Further retesting of the $16 support level could be in order if the shorts secure a close below $17.

At press time, the DOT was trading at $17.12. The RSI has fallen almost 15 points in the past day. The bulls need to defend the 47 support level to prevent potential fallout. In addition, the volume oscillator is in a downtrend, suggesting that the recent breakout still needs more push to sustain a close above the 20 SMA.

Uniswap (UNI)

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Source: TradingView, UNI/USDT

Since losing the $15.3 mark, UNI bulls have been unable to drive a trend-changing rally. The alt index fell 53.09% (since January 21) and hit a one-year low on February 24.

Since then, the UNI has started a 35.5% recovery, touching the upper limit of the Bollinger Bands (BB). As a result, it transcended the average of the BB from resistance to direct support. Now, buying strength is increasing as the bulls keep testing the upper bar.

At press time, the alt was trading at $9.77. After recovering from the key 46-point level, the RSI is swinging above the midline and continues to face the 60 handle barrier. In addition, the DMI line confirms a bullish edge. However, the ADX shows weaker directionality in the UNI.

AAVE

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Source: TradingView, AAVE/USD

After the collapse of the upside channel (green), the bulls lost their advantage and failed to defend even the resistance level of $139 (previous support level). The alt fell more than 40.57% (since February 10) and hit a 13-month low on February 24.

Since the recovery from the $112-$115 range, AAVE has broken out of the lower channel (white) and aims to challenge its resistance level. Meanwhile, Supertrend has moved into green territory as it favors buyers.

At press time, AAVE was trading at $135.199. After a bearish divergence from price, the RSI could not hold above the midline, but still showed promising signs of recovery in the last few hours. Moreover, the OBV is in line with the recent trend while remaining supportive. However, like UNI, AAVE is showing a weak ADX after a sharp dip over the last five days.