For the last 24hrs, Uniswap traded in tight conditions. The coin is consolidating, and has suffered minor losses in the last 24 hours. Uniswap was able to gain more than 30% over the week. But, lately, it appears that the bulls have stopped moving.
Recently, UNI broke through the $6.00 threshold and could now be looking to the $8.00 ceiling. Although buying strength showed a slight decrease, buyers were still larger than sellers on the market. Bitcoin’s price action has helped many altcoins to rally but continued support from the buyers still remain crucial.
According to technical indicators, it appears that UNI may hover in the same price range at least for the next trading session. After the rally, chance of a pullback cannot be ruled out, Currently UNI hasn’t witnessed a pullback but consistent consolidation could drag the coin to the nearest support level.
If it is able to overcome immediate resistance, there may be opportunities for UNI trading above $8.00.
Four-hour Chart: Uniswap price analysis
UNI trades at $7.41 and is still optimistic according to its chart. Current consolidation ranges between $7.33 to $7.49, respectively. A small push from buyers may help Uniswap surpass the $7.57 resistance.
If this happens, then reaching $8.00 is easy. There could also be a possibility that UNI will trade higher than $8.00. However, local support for the coin stood at $7.08 before dropping to $6.47. Uniswap could reach $5.38 if the price falls below $6.47. The volume of UNI trades fell slightly, indicating a decrease in buying pressure.
Technical Analysis
Since the rally, UNI has seen a growing purchasing power on the chart. A small decrease in buyers is evident, but buyers remain in charge of the market. Relative Strength Index was higher than the half-line, which meant that buying pressure outweighed selling pressure.
The 20-SMA line was above the price of UNI, which indicates that buyers drove the price momentum. UNI also traded above the 50-SMA line and 200-SMA, which indicated that it was on a bullish trend.
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Although UNI showed a positive reading in terms of buying power, some indicators indicated otherwise. Chaikin Money flow determines capital outflows and inflows to the asset. Chaikin’s Money Flow fell below half the line, which means that capital inflows decreased. A moving average convergence divergence shows price momentum, and changes in the trend.
MACD went through a bearish crossover. Red histograms below the half-line were observed. This is a signal that there will be a shift in price direction during the next trading session. Buyers are required to support Uniswap if it is to stay in bullish territory.
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Image from Forbes India. Chart from TradingView.com