Published 3 hours ago
Responding to last week’s sell-off, the Uniswap (UNI) price pierced through the range support of $4.5 on June 11th. The breakdown fell to 24.8% and reverted immediately to retest the breached resistance. This retest opportunity may welcome more short-selling in the market and encourage further downfall.
Key points:
- The UNI chart shows buying pressure near the $3.65 mark
- The 20-day EMA line provides constant resistance to coin prices
- The 24-hour trading volume in the Uniswap token is $654.4 Million, indicating a 52.6% gain.
Source-Tradingview
Amid the April crypto crash, the UNI/USDT pair breached the March bottom support of $3.75. The post-retest fall depreciated the altcoin by 54% and formed a lower low of $3.38. However, the daily candle-closing above the $4.55 mark represents lower-level demand pressure.
This new support ($4.46) stalled the ongoing sell-off for nearly five weeks, resulting in a minor consolidation between the $6 and $4.55. However, last week the crypto market was hit by another wave of selling pressure and pierced the $4.55 support.
Furthermore, the breakdown rally retested the $3.38 mark, but the high demand pressure reverted the price immediately. Furthermore, a retest to the breached $4.55 flipped resistance with significant pump in volume activity, suggesting weakness in bearish momentum.
However, if broader market sentiment persists, the UNI sellers would pull the price 20% lower to the $33 psychological mark.
Conversely, a failed attempt from sellers to give a candle closing below $3.38 would increase the reversal chance.
Technical indicator
Since April, the fast-moving 20-day EMA has offered constant resistance to UNI prices assisting sellers in maintaining this downtrend. Therefore, a breakout from this dynamics resistance would be the first sign of a recovery.
However, the daily-RSI slope reverted from the neutral level and nosedived below the 20-SMA, indicating the sellers hold trend control.
- Resistance levels- $7.5, $9.8
- Support levels are $6.63 and $5
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.
Source: https://coingape.com/markets/uniswap-price-analysis-post-retest-fall-could-slump-uni-price-by-20/