Uniswap in an Impressive Bullish Run but Struggles Below $27 Resistance

Oct 02, 2021 at 10:40 // News
Coin Idol
The market has reached the overbought zone

Uniswap (UNI) has been on a positive trend after rising above its moving averages. The market has risen to a high of $26.

Further upside is possible if the altcoin continues its rally to the high at $32. When the price bars are above the moving averages, the price movement of an altcoin is usually accelerated. 

Nevertheless, the stochastic indicator on the daily chart has risen above the 80% range of the market. This means that the market has reached the overbought zone. Further upside is unlikely. Still, the overbought condition may not last in a market with a strong trend. The bullish momentum will run to its logical end. At other times, the market will obey the overbought condition. Currently, the bullish momentum has been met with rejection.

Uniswap indicator reading

The cryptocurrency price is above the 21-day line SMA but below the 50-day line SMA. The upward momentum will continue if the price breaks above the moving averages. UNI is at level 55 of the Relative Strength Index of period 14. The cryptocurrency is in an uptrend and is capable of further upside. The altcoin is above the 80% range of the daily stochastic. The market is considered to be overbought.


Technical indicators:  

Major Resistance Levels - $55.00 and $57.00

Major Support Levels - $30.00 and $28.00

What is the next direction for Uniswap

Uniswap (UNI) is in an uptrend on the 4-hour chart. The bulls have broken above the moving averages. Meanwhile, the uptrend from September 27 has a candlestick body testing the 61.8% Fibonacci retracement level. The retracement suggests that UNI will rise to the Fibonacci extension at 1.618 or $30.94.


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.

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