Uniswap Risks a Further Downward Move as It Faces Rejection at $8.10

The price of Uniswap (UNI) is in a downtrend as the cryptocurrency fell to a low of $6.35 on April 30. The downtrend has eased as bulls bought the dips.

UNI completed an upward correction, but the uptrend was terminated at the $8.10 resistance. Buyers could not overcome the $8.12 resistance level. The $8.12 price level is the historical price level from March 7. 

If the bulls overcome the recent high, UNI will rise above the moving averages. This would signal the resumption of an uptrend. UNI will regain the previous high of $12. However, UNI has turned down from the recent high. The cryptocurrency is likely to trade in a range between $6.35 and $8.12 as the bulls fail to break the recent high. Nevertheless, buyers are likely to defend the current support as the market has reached the oversold zone. UNI is trading at $7.35 as of press time.

Uniswap indicator reading

The cryptocurrency has risen to level 39 on the Relative Strength Index for period 14. Buyers are coming out of oversold territory and driving prices higher. The 21-day line and the 50-day line SMAs are sloping south, indicating a downtrend. The altcoin is below the 50% area of the daily stochastic. This indicates that it is in a bearish momentum as it needs to turn away from its high at $8.10.

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?

UNI is in a downtrend, but selling pressure has reached bearish exhaustion. UNI has made an upward correction. Meanwhile, on April 11, the downtrend has seen a retracement candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that UNI will fall to the Fibonacci extension level of 1.272 or $8.06. The altcoin has fallen below the level of the 1.272 Fibonacci extension and resumed its upward movement.

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.