Why $7.82 Fall Could Set A Sharp Price Correction?

On June 18th, the UNI/USDT pair bounced from the $3.36 mark and initiated a new recovery rally. Following an ascending trend line, this bull run rose 188% as it reached a record high of $9.74. However, the recent post-correction rally failing to breach the proper swing high indicates weakness in bullish momentum. Moreover, in response to the double top pattern, the altcoin is threatened to lose the $7.82 support.

Key points:

• The UNI traders can maintain a bullish bias as the price sustains above the ascending trendline.
• The 50-and-100-day EMA shows a bullish crossover may accelerate the bullish momentum
• The 24-hour trading volume in the Uniswap token is $177.9 Million, indicating a 9% gain.

Source-Tradingview

The Uniwasp (UNI) buyers have struggled to surpass the $9.3 mark over the past two weeks. The multiple higher price rejection candle at this level reflects profit booking from the short-term traders.

Thus, with sustained selling, the UNI price tumbled 12% in the past two days, revealing the formation of a double top pattern. Under the pattern influence, the altcoin may drop another 5% to retest the $7.82 neckline support.

However, along with $7.82, the expected downfall may hit the ascending trendline at the same level, forming confluence support for buyers. If UNI buyers sustain this combined support, the coin price may revert 13% higher and rechallenge the $9.3.

On a contrary note, if the traders follow the bearish pattern and break down from the prior swing low support of $7.82 and long-coming support trendline, the coin price may witness a significant correction. The potential downfall may drop the altcoin 15% lower, hitting the $5.81 support.

Technical indicator

EMAs: the UNI price reverted from the 200-day EMA near the $9.3 mark, indicating the overall trend is still bearish. However, a bullish crossover of the 20-and-50-day EMA may fuel the post-correction rally to surpass the $7.8 resistance.

MACD indicator: A sell signal from the bearish crossover of the fast and slow line bolsters the price correction to breach the $7.82 neckline. However, these slopes above the midline indicate the traders fell positive for this coin.

• Resistance levels- $9.3, $10
• Support levels are $7.82 and $6.62

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.