The past few days saw a recovery in the Uniswap price, but it appears that the bullish trend has reached exhaustion. UNI dropped by 6% in the past 24 hours, causing its price to fall below its descending line.
Although Uniswap gained 0.7% on the weekly chart, most of its gains were wiped out due to the recent drop in price. Currently, the technical outlook for Uniswap indicates that the bears are gaining strength, with demand for the altcoin dipping as buyers lose confidence and accumulation decreases.
For buyers to re-enter the market, UNI must surpass its immediate resistance mark, and buyer strength must make a comeback. However, if Bitcoin fails to remain above the $30,000 mark, it is likely that other altcoins like UNI will also experience a dip.
Even if BTC surges again, UNI’s recovery may not be sustainable in the long run. In addition, UNI’s trading volume has declined, suggesting an increase in short-term selling on the one-day chart.
Uniswap Price Analysis: One-Day Chart
At the time of writing, UNI was priced at $5.95 with a key resistance level of $6. Breaking through this resistance could potentially push UNI to reach $6.30, thereby reversing the bearish thesis.
Conversely, if UNI loses its current price level, it may find support at $5.70. However, if it falls below this level, it could drop to $5.30. The recent trading session saw an increase in the number of sellers, which was reflected by the red volume bars on the chart.
Buyers are leaving the market owing to decreased demand. This has caused Relative Strength Index (RSI) to dip below the half-line, indicating that sellers currently outnumber buyers. A further drop in price could lead to a complete return of bearish sentiment as the price falls into a supply zone.
Additionally, UNI’s price has fallen below the 20-Simple Moving Average (SMA) line, indicating that sellers are currently driving the price momentum in the market. However, if buyers were to step in, UNI could potentially rise above the 20-SMA line.
The bears have taken over, as evidenced by other technical indicators. Despite this, the Moving Average Convergence Divergence (MACD) indicator displayed green histograms. These are associated with buy signals.
However, the buy signal’s strength has decreased. It indicated mounting bearish pressure. Meanwhile, the Bollinger Bands, which measure price volatility and fluctuation, have tightened, suggesting that UNI could experience range-bound movement in the upcoming trading sessions. Moving forward the broader market strength will be crucial for the price of the altcoin.
Featured Image From UnSplash, Charts From TradingView.com