Uniswap (UNI) Price Struggles To Overcome $6.8 Resistance

The recent downturn in the Uniswap (UNI) market has forced UNI’s trading range to shrink significantly. During the bull market in July, UNI jumped more than 60 percent in just over two days, leading to the subsequent decline.

After this price increase, the ensuing weeks showed a reversal pattern known as a “head and shoulders”, which eventually drove the price lower.

The price has shown high volatility over 16 days, as evidenced by historical market stats. This volatility indicates a fierce battle between bulls and bears.

Chart: TradingView.com

It is clear that the bears won this war, as the price of Uniswap fell by 17.30 percent, as shown in the figure.

Before the price reversal, the regression channel is showing the downtrend more strongly. Due to this turn of events, the cost of Uniswap increased from $5,745.00 to $6,459.00, a 13.54 percent increase in prices.

However, the currency went through another period of volatility as price swings were driven by bulls and bears. It happened after Uniswap bulls attempted to break above the 50% Fibonacci retracement line.

Chart: TradingView.com

The bears prevailed again at the end. The price of the coin fell an additional 15.54 percent after this victory. The loss of 13.54 percent in nine days was completely wiped out by the disaster.

The Uniswap trend has been on the rise since the last market crash, which brought us to our current position. But a problem occurred as a result of the movement. It narrows somewhat towards the conclusion.

The leading trend line served as resistance. The Stoch RSI rating indicates that the coin saw one strong sell signal at this point.

Uniswap Chart: TradingView.com

This alerted the speculators and traders at Uniswap to the possibility of another correction in the market. In this predicament, UNI price can only move in two directions: up or down.

1 – The price will surpass the $6.8 psychological resistance and continue to rise, and

2 – Uniswap price will not settle at the 50% Fibonacci retracement level before the correction.

This speculative activity prevents traders and investors from doing business in the area. It stands in a vital place as any breakout can lead to huge gains and losses.

As of this writing, Uniswap bulls aim to hold their positions above the 50% Fibonacci mark.

If the price breaks upwards, it will gain speed towards the 38.20 Fibonacci level and possibly exceed it. If the price declines, it should not fall below the $5.87 support level.

UNI total market cap at $4.5 billion on the daily chart | Source: TradingView.com

Featured image from Somag News, Chart: TradingView.com

Leave a Comment

Your email address will not be published. Required fields are marked *