Uniswap price faced rejection from the $7.00 and corrected approximately 20% from the recent swing high. It retraced back to the 50-day EMA and buyers are trying to halt the correction.
The trend of Uniswap crypto is in the upward direction because the price is sustaining above the 50-day EMA. So, the buyers might be active near the EMA and will act as strong support for the bulls.
In the mid of November, the UNI price displayed a massive spike of 25% on a single day. It triggers the positive sentiment and the price begins the journey to reach a year-till-date high.
That sudden move is supported by a high buying volume which increases the reliability of the breakout. However, the momentum loses near to $7.00 and sellers again succeed in defending the supply zone.
At present, Uniswap is trying to recover by taking support near to $6.00. This crypto needs fresh buying to regain the momentum and to retest the previous swing high.
Currently, UNI price is trading at $6.028 with an intraday uptick of 1.72%. The volume to market cap stands at 2.64%.
Uniswap Price Analysis: Is It a Short Term Correction?
Uniswap price is bullish on a higher time frame chart and bulls are active in the demand zone. Till the price sustains above the $4.800 level, any short-term correction might get easily absorbed near the support.
The recent downfall in UNI looks temporary and buyers might soon come forward to push the upward.
The next phase of rally in this coin will trigger when buyers can break out of the $7.00 hurdle. Till then it’s better to play mean reversal trades from the current levels.
UNI Crypto Price is Near to the Demand Zone
UNI crypto price is near to the demand zone so the downside risk remains low. It will be difficult for the sellers to pull the price below $6.00 support. Therefore, aggressive investors may take this as a golden opportunity to build fresh long positions.
However, conservative investors should wait for the confirmation of a $7.00 breakout to build longs and be on the safer side. Moreover, if the price bounces back and hits new swing highs then aggressive investors will get a high reward for taking the risk.
Conclusion
Uniswap price is in a short-term correction phase and it retraced back to the 50-day EMA. However, the buyers seem active near the support so the probability of a rebound remains high.
Technical levels
- Resistance levels: $7.130 and $7.800
- Support levels: $5.500 and $4.800
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
Source: https://www.thecoinrepublic.com/2023/12/21/uniswap-price-struggles-to-defend-6-will-uni-crypto-rebound/