Is Bearish RSI Divergence Points At $6.50?

Uniswap price edges lower on the first trading of the week. The current price action displays negative momentum. As of writing, UNI/USD value is down to $6.97 with nearly 4% losses. The 24-hour trading surged 45% at $246,902,301.

As a general rule, a fall in price with rising in volume is a bearish sign. Now as per the theory, if the price breaks below the $6.80 level on a daily basis it could bring more losses to the pair.

• Uniswap price continues to portray consolidative moves but with negative bias this time.
• The price zipped in a range of $6.70 and $7.70 for the past 10 days.
• The bearish rsi divergence hints at a lower breakout on the daily chart.

Uniswap consolidates with negative bias

On the daily chart, the Uniswap price is making higher highs and higher lows along with declining volumes. The price faces rejection near the $7.45 mark. The asset tagged the mentioned high, but the lack of buying momentum causes a pullback. Uniswap found interim support of around $6.70. The level holds the key to further price action.

The RSI (14) slops below the average line, showing a probable weakness with a bearish divergence. Another oscillator, the MACD also shows the same bearish move. The indicator is heading toward the midline with the receding bullish momentum.

On moving lower, sustained selling pressure could drag the price to $6.80 followed by $6.50.

The 1-hour chart shows volatile moves

On the hourly time frame, the price formed a bullish Flag and pole pattern. The nearest support is found at $6.65. The RSI indicator is currently moving near the 50 level, which indicates consolidation, and further confirmation is required to make aggressive bids.

Conclusion:

UNI is looking weak in the higher time frame, but strong in a lower time frame. As long the price holds above the $6.90 mark, the correction could be a dip-buying opportunity. However, a break below would bring $6.50 into the picture.