Uniswap Retraces above $4.66 as the Crypto Reaches Oversold Region

Today, the price of Uniswap (UNI) is in a downward movement as it retests the current support at $4.66. The bears are trying to break the current support to retest the previous low at $3.67. However, if the current support holds, the downside momentum will be invalidated.

In the last two weeks, the bulls have defended the current support at $4.66 due to the long candle tail. 

The long candlestick tail suggests that support at $3.67 is strong when buying at lower levels. If the current support holds, the cryptocurrency will return to the range. In the last price action, the market fluctuated between $4.66 and $6.00 price levels. However, buyers have a difficult task to break above the 21-day line moving average. The altcoin will resume its uptrend when the price rises above the 21-day moving average line. On the other hand, the altcoin will fall below the current support if it turns away from the moving averages.

Uniswap indicator reading

The price bars of the cryptocurrency are below the moving averages, which indicates a possible decline. The current rejection occurred at the 21-day moving average line. UNI is trading in the bearish trend zone as it is at the 35 level of the Relative Strength Index for the 14 period. The altcoin is below the 20% area of the daily stochastic. The market has fallen into the oversold area of the market. The 21-day line and the 50-day line SMAs are sloping south, indicating a downtrend.

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 in a downtrend as the bears are trying to break the current support. The altcoin is fluctuating above the current support. 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 1.272 Fibonacci extension level 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.

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