The price of Uniswap (UNI) is in a downward correction at the bottom of the chart.
The cryptocurrency was trading above $10 support after the January 22 price drop. However, selling pressure resumed after the altcoin encountered rejection at the $11.54 high. Sellers continued to push the altcoin to the low of $8. However, on February 24, UNI fell sharply to the low of $7.54 as bulls bought the dips. Today, Uniswap is trading at $9.15 as of press time.
The recent downtrend has caused the cryptocurrency asset to fall into oversold territory, which has resulted in buyers showing up in oversold territory. It is unlikely that the altcoin will fall further as the market has reached the oversold region. If UNI rises above the current support, buyers will try to push UNI /USD back to the resistance at $12.91. A break above this resistance would signal the resumption of the uptrend.
UNI is at level 38 of the Relative Strength Index for period 14, indicating that the altcoin is approaching the oversold zone. It is in the downtrend zone, which makes it vulnerable to a decline. The price of the cryptocurrency is below the moving averages, which indicates a possible decline. UNI /USD is above the 80% area of the daily stochastic. This indicates that buyers have pushed the altcoin into the overbought zone after the rally.
Key resistance levels - $55.00 and $57.00.
Key support levels - $30.00 and $28.00.
UNI/USD has resumed an upward movement after the recent price slump. The current uptrend is encountering resistance at the recent high. In the February down move, 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 $7.32.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.