Uniswap Continues Its Range-bound Move but Holds Above $4.60

The price of Uniswap (UNI) resumed a sideways movement after the May 12 plunge. The cryptocurrency is now fluctuating between $4.60 and $5.80 price levels. Nonetheless, the 21-day line (blue line) SMA has continued to drive the cryptocurrency to trade in a tight range. At the time of writing, the altcoin is trading at $4.89.

Buyers are trying to push UNI to previous highs. However, the upward movement is limited by the 21-day SMA line. A rebound above the $4.60 support will break the 21-day SMA line and the $6 resistance. This will push the cryptocurrency to rise above the 50-day line SMA. The upward movement will accelerate if the bulls maintain the upward momentum above the 50-day line SMA. However, if the cryptocurrency fails the moving average, UNI will fall to a low of $3.57.

Uniswap indicator reading

UNI is at level 41 of the Relative Strength Index for the period 14. The RSI has remained the same due to the indecisive candlesticks with a small body. The cryptocurrency is trading in the bearish trend zone. As long as the price bars are below the moving averages, Uniswap will go down. The 21-day line and the 50-day line SMAs are sloping south, indicating a downtrend. The altcoin is below the 40% area of the daily stochastic. The market is in a bearish momentum. 

Technical indicators:  

Major Resistance Levels - $18.00 and $20.00

Major Support Levels - $10.00 and $8.00

What is the next direction for Uniswap?

UNI is fluctuating in a limited range between $4.60 and $5.80. The market will develop a trend if the range is broken. 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 $3.19.  

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.