UNI Technical Analysis: A Retracement To $5.6 Warns Downtrend
The Uniswap (UNI) price struggles to follow up on the $6.66 breakout resulting in a minor consolidation phase. Is it safe to hold now?
Key Technical Points:
- The UNI prices dropped by 4.7% in the last 24 hours.
- The coin price wavering between the $7.5 and $6.65 level shows a no-trading zone.
- The 24-hour trading volume of Uniswap is $245.4 million, indicating a gain of 43.12%.
Past Performance of UNI
Amid uncertainty in the crypto market, the UNI/USDT pair formed an inverted head and shoulder pattern in the daily chart. On July 9th, altcoin gave a massive breakout from the $5.82 neckline, indicating early signs of a trend reversal. The post-retest rally surged 40% higher to the $7.5 mark. Source - Tradingview
UNI Technical Analysis
Following the $6.66 breakout, the UNI price trend lost bullish momentum, leading to a consolidation range between the $7.5 and $6.65 barriers. This small consolidation can be referred to as a short break for buyers before continuing the prevailing recovery. While the price action walks a lateral path, the daily-RSI slope plummets lower, indicating a loss of bullish momentum. Thus, if bearish divergence continues to sink lower, the altcoin is likely to breach $6.65 Moreover, the MACD indicator showcases a sell signal with the bearish crossover of the fast and slow line. Hence, the momentum indicators project a high possibility of a price correction before the coin price could continue the bull run. In a nutshell, the Uniswap (UNI) technical analysis displays a consolidation phase under rising bearish momentum.
A bullish breakout from $7.5 resistance would resolve the current uncertainty in the market in buyers' favor. Thus, the potential rally may surge the UNI price to its first target of $8, registering a 7.7% gain. On a contrary note, a breakdown from $6.6 support would call for a significant retracement which may plunge the altcoin to the $5.8-$5.6 support zone. Resistance Levels: $7.5 and $8 Support Levels: $6.6 and $$5.8-$5.6
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