A Uniswap (UNI) recent market downturn has forced UNI’s trading range to shrink significantly. UNI climbed more than 60 per cent in less than two days in the bull market of July. This prompted the fall.
After this price increase, the weeks that followed showed a reversal pattern known as a “head and shoulders,” which eventually led to a price decline.
The price showed significant volatility over a 16-day period, as evidenced by the market’s historical statistics. This volatility indicated a fierce fight between bears and bulls.
Chart: TradingView.com
As shown in this figure, the price for Uniswap dropped by 17.30%.
The regression channel clearly shows the decline in trend before a price reverse. This has resulted in a 13.54 percent price increase for Uniswap, which is now at $6.459.00.
The coin experienced another period of volatility, as both bulls and bears drove price swings. This happened just after Uniswap bulls tried to break the 50% Fibonacci retracement.
Chart: TradingView.com
In the end, bears won again. The coin’s price dropped by an additional 15.54 percent after this victory. In nine days, the disaster completely erased 13.54% of that loss.
Uniswap’s trend has been on the rise since the most recent market meltdown, which has brought us to our current position. The movement has led to an issue.
As resistance, the leading trend line was used. Stoch RSI Rating indicates that this currency received one strong sell signal.
TradingView.com: Uniswap chart
This alerted traders as well as speculators in Uniswap about the possibility for a market correction. In this predicament, UNI’s price can only move in two directions: up or down.
1 – the price will surpass the psychological resistance of $6.8 and continue to rise, and
2 – Uniswap price will not stabilize at the 50% Fibonacci retracement level before retracing.
This is speculative behavior that prevents investors and dealers from operating business in the region. Because of its centrality, any breakout could result in huge gains or losses.
As of the writing this, Uniswap bulls plan to keep their position at or above 50% Fib.
It will accelerate towards the 38.20 Fibonacci Level if the price moves upward. The $5.87 support level should be maintained if it falls.
UNI Total market Cap at $4.5B on Daily Chart | Source: TradingView.com Image featured from Somag News Chart: TradingView.com