Uniswap Slumps after Formation of a Bearish Double Top, Faces another Rejection at $29

On March 25, Uniswap (UNI) price slumped to $26 support as the altcoin found support above it. UNI rebounded above the support as price resumed an upward move.

Since March 7, buyers have been retesting the $35 and $36 resistance zones to break above them. The market has been in a sideways move as price fails to break these resistance levels. The altcoin now fluctuates between $29 and $36. On March 20 and 22, buyers retested the resistance zones and were repelled. 

Later, the price action formed a bearish double top pattern which was responsible for the recent breakdown. Presently, buyers are attempting to break above $29 resistance. A break above the resistance will propel price to return to the range-bound zone between $29 and $36. The market will rise as price retests the $36 resistance zone. Conversely, if it faces rejection at the $29 high; the altcoin will decline to $26 or $21 low. 

Uniswap indicator reading 

UNI has fallen to level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The altcoin price has broken the 21-day SMA and if it breaks the 50-day SMA, the downtrend will resume. The market will decline as price falls into the bearish trend zone.

Technical indicators:  

Major Resistance Levels – $35.00 and $37.00

Major Support Levels – $22.00 and $20.00

What is the next direction for Uniswap? 

UNI is currently in a downward movement. The Fibonacci tool has indicated a possible fall and reversal of price. On March 24 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. It indicates that UNI will fall but will reverse at level 1.272 Fibonacci extension. That is, the market may reverse at a $27.74 low. From the price action, the market has reversed but price is facing rejection at the recent high.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.