UNI/USD set to below $7.82 support level

TL;DR Breakdown

• Price experienced a fall up to $10.97.
• Uniswap price analysis shows a downtrend.
• Support is still fixed at $7.82 extreme.

UNI made a total of 3 unsuccessful attempts, which has resulted in a bearish dark cloud cover pattern being formed on a daily timeframe. It appears as if when there are substantial declines in value, such as this one, associated with heavy trading volume, they do not stop until significant support levels have been formed or broken through. In light of this information, it is advised that if you own any UNI tokens, you reduce your position accordingly and wait for further signals before initiating new ones.

UNI/USD 1-day price chart: Bulls struggle against heavy bearish pressure

The daily Uniswap price analysis shows a downtrend in UNI/USD. After reaching an all-time high of $14.92 not too long ago, the cryptocurrency is now down to a low of $10.97. Although it has been suggested that support will be formed at this price level, currently named “extreme,” there is absolutely no way of telling if or when such a phenomenon will occur. The market will need to break below this value before such an event can happen, and thus, on its own it is unable to indicate whether the downtrend will proceed further downwards on any given timeframe.

The chart shows a number of failed attempts by the bulls at pushing prices above $11.25. Although this is not an established support level, the current price indicator suggests that the bulls will be very difficult to push prices higher.

The short-term UNI/USD price analysis offers a different perspective to the long-term one. In this case, it is suggested that there may be a trend reversal in the offing. Although the resistance at $11.25 has been breached, for now, it may return in the future or at least remain relevant enough for bulls to attempt pushing prices higher again. If this is achieved, it could result in a bullish breakaway pattern being formed, which would signal a likely trend reversal and, therefore, an end to this bearish trend observed lately on all timeframes.

UNI/USD 4- hour price analysis: Bears maintain downward trajectory as bulls fail to push prices upwards

The MACD indicator on the 4-hour timeframe confirms that bearish pressure is still dominant in this market. The indicator shows a steady decline in value, following a number of failed attempts by the bulls to gain momentum and push prices higher. Such declines usually result in continuing downwards unless they are disrupted by significant support levels breaking through.

The chart above shows four occasions where the bulls attempted to push prices upward; all of them were eventually defeated as bears continued increasing their grip on control over the market. On each occasion, the price dropped below $10.50 and came extremely close to dropping below $10 at multiple points during those “bull traps.”

Although the bulls have made multiple attempts to push prices higher, it has mostly been futile. Instead of going up, bears have overwhelmed them and pushed prices further down to reach $11.9 extreme. This points out that a bearish influence is very strong at this point and that it would rather pull prices downwards than let them go up against their will.

However, in terms of technical indicators, there are no clear indications on which way trading may be heading next. The RSI indicator provides conflicting signals as both bulls and bears exert their will on the price. As a result, it may be wise to wait for more coherent signals before considering any new positions.

Uniswap price analysis: Conclusion

UNI is now at a very volatile stage where it is difficult to predict which way trading will head or how long this situation will continue. The only thing that can be inferred from the current technical analysis is that there are no bullish signs on the horizon and that bears still have control over this market. It may be advisable for those who own tokens in either platform to wait for further developments before considering any new positions, as these remain highly speculative until a conclusive pattern emerges.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.