The price of Uniswap (UNI) has plummeted to a low of $11 after failing to hold above the $18 high. The cryptocurrency has fallen to $11.85, which is the previous low of January 25, 2021.
Before the recent price drop, the market fluctuated between $13.80 and $18 price levels. Buyers unsuccessfully tried three times to overcome the moving averages or the high at $18, but were rejected. UNI/USD has fallen into the oversold area of the market. The current downtrend may weaken as it approaches the oversold region of the market.
Uniswap indicator reading
Uniswap has fallen to the 31 level of the Relative Strength Index for the 14 period. The cryptocurrency is considered oversold when it reaches level 30. Sellers are running short while buyers are taking center stage. Similarly, UNI is below the 20% area of the daily stochastic. This confirms that the market has reached the oversold area.
Technical indicators:
Major Resistance Levels – $55.00 and $57.00
Major Support Levels – $30.00 and $28.00
What is the next direction for Uniswap
UNI/USD breaks the previous low at $13.80 and continues the downtrend. The Fibonacci tool has indicated a possible reversal in the cryptocurrency. In the downtrend from December 17, a retracement candlestick tested the 78.6 Fibonacci retracement level. The retracement suggests that UNI will fall but reverse at the 1.272 Fibonacci extension level or $9.76.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
Source: https://coinidol.com/uniswap-18-high/