Uniswap Reaches the Overbought Region as It Struggles Below $8.00

Since June 23, the price of Uniswap (UNI) has regained upside momentum as the cryptocurrency trades in the bullish trend zone. Today, UNI is trading at $7.04 at press time. Last week, the uptrend stalled below the $8.00 resistance zone.

The recent high was an overbought area of the market. The cryptocurrency will continue to rise to the high of $10 if the bulls break the resistance at $8.00. Nevertheless, UNI could decline if the altcoin is rejected at the $8.00 resistance level. However, if the altcoin falls back below the moving average line, selling pressure will resume. In the meantime, UNI/USD is trading at $7.04 at the time of writing. 

Uniswap indicator reading

UNI is at the 58 level of the Relative Strength Index for the 14 period. The cryptocurrency is in the bullish trend zone after a minor retracement. The cryptocurrency price is above the moving average lines, indicating a possible upward movement of the cryptocurrency. UNI is above the 80% area of the daily stochastic. This means that the market has reached the overbought region. Sellers are attracted to the overbought region. 

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?

The uptrend continues despite the pullback from the resistance zone. A break above the resistance level will signal the resumption of the uptrend. Meanwhile, the July 8 uptrend has a candle body testing the 38.2% Fibonacci retracement level. The retracement suggests that UNI will rise to the 2.618 Fibonacci Extension level or $8.59.

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.