Uniswap Risks a Fresh Decline as It Faces Rejection at $6.40

Uniswap (UNI) is in a downtrend as it trades above key support at $5.00 and below moving average lines.

The altcoin has quickly dropped into the lower price range after encountering resistance at the recent high. After breaking the November 5 uptrend at the $8.00 resistance level, the recent downturn began.

The former range bound zone is currently where UNI is located. The price range for Uniswap was limited to values between $5.00 and $6.40. The cryptocurrency will return to the trend if the range limits are exceeded. After the price drop on November 9, UNI is currently trading between $5.00 and $6.40. If sellers break the existing support, there are warning signs of a possible slide to the low of $3.00. The coin is currently priced at $5.75.

Uniswap indicator reading

For period 14, the Relative Strength Index is at level 44. The altcoin has now entered the negative trend zone after the recent slump. It is likely to decline further as the price bars are below the moving average lines. The altcoin is in a downward trend as the daily stochastic is below the level of 40.

Technical indicators:  

Major Resistance Levels - $18.00 and $20.00

Major Support Levels - $8.00 and $6.00

What is the next direction for Uniswap?

New selling pressure is applied to UNI as it is rejected at the high of $6.40. UNI reversed upwards during the decline that started on November 9 and a candlestick tested the 61.8% Fibonacci retracement level. After the correction, Uniswap will fall to the 1.618 Fibonacci extension level or $2.86.

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.