Will UNI Price V-shaped Recovery Reclaim $10 Mark?

The UNI/USDT technical chart showcases a textbook example over the past four months. The April to Mid-June downfall reached a low of $3.37, after which the price reverted immediately. In the last six weeks, the direction rally has reached a record high of $9.74, registering a 192%. Moreover, the ongoing rally charges toward the $10 resistance with breakout intention.

Key points:

• An ascending support trendline maintains the ongoing recovery rally
• The 50-and-100 EMA nearing a bullish crossover may attract more buying orders in the market.
• The 24-hour trading volume in the Uniswap token is $332.3 Million, indicating a 16.6% gain.

Source-Tradingview

Last weekend the crypto market witnessed a sudden sell-off and triggered a minor retracement in several cryptocurrencies. Thus, the UNI/USDT pair faced the same fate and plunged 10.85% lower to retest the recently breached $8 psychological resistance.

Furthermore, this new flipped support provided a suitable launchpad for coin buyers, bolstering them to resume the prevailing recovery. By the press time, the UNI price has jumped 11.64% and currently trades at the $9.22 mark.

The sustained buying should encourage UNI price to rechallenge the overhead resistance level of $9.85-$10. If buyers overcome this resistance, the recovery would extend another 27% higher to reach $12.5.

However, the higher price rejection on July 28th daily candle indicates the sellers are defending this resistance. Thus, if the coin price fails to give a candle closing above the $10 mark and shows reversal signs again, the altcoin may plummet to aligned support of the ascending trendline and $8.

The UNI price has been riding this support trendline since the beginning of the ongoing bull run, providing a dynamic support level to buyers. Therefore, until this support trendline is intact, the buyers can keep a positive bias for Uniswap (UNI) coin.

However, a breakdown below this trendline will call for a deeper price correction.

Technical indicator

EMAs: Along with a $10 breakout, the expected rally would even reclaim the 200-day EMA slope, offering an extra edge to buyers. Moreover, the 20-day EMA act as dynamics support for UNI price.

RSI indicator: the daily-RSI slope shows relatively shorter higher highs in its chart, indicating the losing bullish momentum. This growing divergence in momentum indicators bolsters the correction theory.

• Resistance levels- $8, $6.61
• Support levels are $10 and $12.5