Uniswap (UNI) has entered the bullish trend zone after rising above the 21-day simple moving average (SMA). The upside correction is currently trapped between the moving average lines.
The altcoin has been fluctuating between the moving average lines for the past three days. On the upside, the cryptocurrency's price is unlikely to reach previous highs of $6.00 or $6.50 as the market is considered overbought. Nevertheless, UNI will fall if sellers appear in the overbought zone of the market. The altcoin will fall above the 21-day line SMA. If the altcoin holds its position above the 21-day line SMA, the current rangebound movement will continue. If the price falls below the 21-day line SMA, UNI will fall to its previous low of $5.00.
For the 14 period, the Relative Strength Index is 52, indicating that Uniswap is in an uptrend and has the potential to rise to previous highs. The price bars are between the moving average lines, which indicates that the cryptocurrency might be moving within a range. The altcoin is in the overbought zone of the market and above the 80 level of the daily stochastic. This indicates that the uptrend has run its course.
Key resistance levels - $18.00 and $20.00
Key support levels - $8.00 and $6.00
UNI is currently in a rangebound move between the moving average lines. If the rangebound levels are broken, the altcoin will start trending. In the meantime, sellers have an advantage as the market has reached the overbought area. If sellers emerge in the overbought area, UNI could fall. The altcoin could fall to its previous low of $5.00. If the current support level is broken, UNI will fall to a low of $2.88.
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 in funds.