Uniswap Consolidates as Price Rally or Breakout Could Occur

Uniswap (UNI) price is in a sideways movement after the May 12 price drop. On May 12, the cryptocurrency fell to a low of $3.67 as bulls bought the dips. The market corrected upward to a high of $5.46 and began a sideways movement.

Uniswap (UNI) price long-term forecast: bearish

Last week, UNI consolidated above $4 support. There has been no significant price movement since the last downward impulse. Rather, UNI/USD has resumed consolidation above $4.00 support. Continued consolidation will lead to a price recovery or breakout. It is possible that the downtrend will resume. UNI will rally to the high of $8.00 if the altcoin rises again. Uniswap will fall to the low of $3.67 if it loses the current support.

Uniswap (UNI) indicator reading

Due to the upward correction and consolidation, the altcoin is at level 37 of the Relative Strength Index for the period 14. The altcoin is in the downtrend area and could fall further to the previous low. The 21-day line and the 50-day line of the SMAs are sloping south, indicating a downtrend. UNI is above the 40% area of the daily stochastic. The market is in a bullish momentum, but it is unstable. 

Technical Indicators: 

Key resistance levels - $18.00 and $20.00

Key support levels - $10.00 and $8.00

What is the next direction for Uniswap (UNI)?

UNI is in a sideways movement as it consolidates above the current support. The price action is characterized by candles with small bodies responsible for the current movement within the trading range. Meanwhile, on May 12 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that UNI will fall to the Fibonacci extension level of 1.272 or $2.86. 

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.