Upcoming Retracement May Discount Prices By 10%

Coinmama


Published 10 mins ago

The Uniswap (UNI) price resonated between the $7.5 and $6.6 barriers for the past two weeks, indicating uncertainty among market traders. This consolidation was meant to show sustainability above the $6.6 flipped support. However, with rising bearish momentum, the coin price couldn’t hold any longer and delivered a decisive breakdown. 

Key points:

The UNI price may drop 9% before hitting a viable support
The lower band of the Bollinger band indicator situated at the $5.5 mark strengthens the buyer’s defense
The 24-hour trading volume in the Uniswap token is $654.4 Million, indicating a 52.6% gain.

UNI/USDT ChartSource-Tradingview

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Amid the recent recovery phase in the crypto market, the UNI/USDT pair soared 130%, recorded from the June 18th low ($3.37) to the July 19th high ($7.71). The buyers knocked out several resistances between this run-up, while the most recent one was $6.6.

However, the coin buyers spent nearly two weeks trying to sustain above the $6.6 flipped support but could not surpass the $7.5 mark. The multiple long-wick rejection candles during the retest phase indicated the exhausted bullish momentum and triggered a bearish pullback.

Today, the UNI price is down 9% and breached the $6.6 support level. A candle closing below this mark would validate a genuine breakdown and may plunge the altcoin 10% lower to $5.8.

Following this support, the UNI chart shows $5.5 and $4.5 levels that could provide a stable footing for buyers to continue the prevailing recovery.

However, a breakdown below the $4.5 support would indicate weakness in buyer commitment, threatening a sweep below $3.4.

Technical indicator

Bollinger band: The indicator’s midline provided dynamic support to UNI price during the recovery phase. However, the coin holders lost this foothold along with a $6.6 breakdown, indicating a significant correction on its way.

RSI indicator: the daily-RSI slope drops to the midline(50%) mark suggesting the bearish sentiment is returning in the market. Moreover, this breakdown would offer an additional confirmation for price retracement.

Resistance levels- $6.61, and $7.5
Support levels are $5.82 and $5.5

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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