Uniswap Drops Sharply as Bulls Fail to Overcome $22.50 High

Uniswap (UNI) has fallen over the past week and is nearing the previous low above $15. The reason for the decline is that the bulls have been unable to maintain the upward correction above the recent high of $22.50.

The altcoin could have exited the downward correction and resumed upward momentum if the recent high is broken. Buyers will be on advantage to push the crypto to retest or break the $30.50 overhead resistance.

Nonetheless, the cryptocurrency has fallen sharply to retest the previous low at $15. The $15 support has not been breached since May 18. Three times the cryptocurrency plunged to the previous low as the bulls bought the dips. There are long candlestick tails above the previous low, indicating strong buying pressure above current support. Uniswap will make an upside correction if the prior low holds. A break below $15 support will mean the resumption of a downtrend.

Uniswap indicator reading

UNI has fallen to the 37 level on the Relative Strength Index for period 14. It indicates that UNI is approaching the oversold area of the market. For now, the altcoin is below the midline 50 and able to fall on the downside. The cryptocurrency is above the 25% area of the daily stochastics. The bands are sloping horizontally.

Technical indicators:

Major Resistance Levels - $55.00 and $57.00

Major Support Levels - $22.00 and $20.00

What is the next direction for Uniswap?

Uniswap has reached bearish exhaustion. The current downside move will likely abate when it reaches the prior low. The upside correction that was staved off at $18 is forcing the altcoin to fall. Meanwhile, on July 14 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement. The retracement indicates that UNI is likely to fall, but reversed to level 1.272 Fibonacci extension or level $15.51.

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.