Uniswap Rebounds as It Resumes Uptrend but Faces Challenges at $6.71 High
The price of Uniswap (UNI) is in a downtrend, but is making positive moves as it breaks above the 21-day line SMA. On July 28, the price of UNI rose to a high of $9.80, but was then pushed back.
The initial uptrend was terminated due to an overbought market condition. The cryptocurrency fell to a low of $5.71 and resumed a new uptrend.
The cryptocurrency price broke through the 21-day line SMA, after testing it for the second time. UNI is now trading above the 21-day line SMA, but below the 50-day line SMA. If buyers keep the price above the 50-day line SMA, the altcoin will rise and regain the previous high of $9.80. UNI will continue to rise to $12.04 if the current resistance is broken. Conversely, the coin will be forced to move between the average lines if the 50-day line SMA is not broken.
Uniswap indicator analysis
Uniswap indicator is at the 46 level of the Relative Strength Index for the 14 period. It indicates that the cryptocurrency is in the downtrend zone despite the upward correction. Buyers are trying to keep the price above the 21-day line SMA. This will cause the cryptocurrency to move in a certain range. UNI is below the 80% area of the daily stochastic. This indicates that the market is in a bearish momentum, but it has subsided.
Key Resistance Zones: $12.00, $14.00, $16.00
Key Support Zones: $10.00, $8.00, $6.00
What is the next direction for Uniswap?
Uniswap's upward correction is meeting resistance at $6.71. The cryptocurrency is capable of another uptrend. Meanwhile, on September 9 uptrend, a retraced candle body tested the 61.8% Fibonacci level. The retracement suggests that UNI will rise to the Fibonacci extension of 1.618 or $7.24.
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 CoinIdol. Readers should do their research before investing in funds.
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