Can Oversold RSI Uplift UNI Price from $6 Support level?

Uniswap

Published 42 mins ago

From Mid-June to August, the UNI/USDT token showed steady growth in response to an ascending trendline. This run-up surged the prices by nearly 200% as it reached and formed a local top at the $9.68-$9.74 mark. However, Amid the August third-week sell-off in the crypto market, the UNI price turned down from the $9.68 mark. The bearish reversal breached the support trendline on August 17th, positioning the Uniswap token for a prolonged correction.

Key Points from UNI analysis: 

  • Losing 0.618 FIB support would indicate weakness in bullish commitment
  • The downsloping 20-day EMA is on the verge of dropping below 50-and-100-day EMA, preparing a strong sell signal 
  • The 24hr trading volume of Uniswap has increased by 11% to reach $175.6 Million.

UNI/USDT ChartSource- TradingView

The UNI price has plunged to the $6-5.9 support zone, registering a 38.8% loss within a fortnight. Moreover, this support level aligned with the 0.618 Fibonacci retracement level, projecting a high area of interest for uptrend continuation.

The UNI price is currently trading at the $6.13 mark, with a 0.49% intraday loss. Furthermore, the coin chart shows a long-tail rejection candle at $6 support, indicating the buyers are wrestling trend control from sellers.

If they succeed, the resulting rally may surpass the immediate resistance level of $6.64 and challenge the high supply zone at $7.45. This resistance level, crowded with 20-50-100-day EMAs, makes it a formidable barrier.

On the other hand, if the bearish cloud continues to influence the crypto market, the UNI price may lose $5.9 support, resulting in a price drop to 21.7%, where it could hit $4.674 support.

Technical Indicators 

MACD indicator: The MACD and signals slumped below the neutral line give additional confirmation of short-sellers. Moreover, the rising red bars in the histogram reflect steady selling in the market.

Relative Strength Index: the RSI slope on the verge of entering the oversold regions indicates the traders have overextended their selling activity. Thus, the oversold RSI may attract more buyers at a discount, triggering a short relief rally.

  • Resistance Levels: $6.64 and $7.4
  • Support Levels: $6 and $4.64

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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