Uniswap (UNI) is in a downtrend and fell to a low of $3.67 on May 12. The current decline was caused by the inability of buyers to keep the price above the $8.00 resistance.
Had the bulls broken above the $8 high, the market would have risen to $10. In other words, UNI would have risen above the moving averages.
The cryptocurrency will have an accelerated move in the bullish trend zone. The market will reach the previous high of $12. However, further downward movement is unlikely as the market is reaching the oversold zone. Moreover, the bearish candlestick has a protruding long tail indicating the current support. The long candlestick tail indicates that there is strong buying pressure at the current support. Meanwhile, UNI/USD is trading at $5.03 as of press time.
Uniswap indicator reading
Uniswap has fallen to the 30 level of the Relative Strength Index for the 14 period. The altcoin has fallen into oversold territory, indicating that the downtrend has reached bearish exhaustion. The 21-day line and the 50-day line SMAs are sloping south, indicating a downtrend.
Technical indicators:
Major Resistance Levels – $18.00 and $20.00
Major Support Levels – $10.00 and $8.00
What is the next direction for Uniswap?
UNI is deep in oversold territory, but the upside is encountering rejection at $5.46. Meanwhile, the May 1 downtrend has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that UNI will fall to the Fibonacci extension level of 1.618 or $4.13.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
