Published 10 mins ago
The UNI/USDT pair has been struggling to take support at the crucial support level of $5.72 as the increasing selling pressure teases a breakdown. However, the RSI indicator projects the possibility of a reversal with a lower price rejection as it displays a bullish divergence. So, should you consider booking your profits before the bearish breakout, or will the Uniswap buyers sustain dominance at the $5.72 mark?
Key points from UNISWAP analysis:
- The UNI buyers obtain suitable support from the $5.7 mark.
- A bullish RSI divergence suggests weakness in bearish momentum
- The 24-hour trading volume in the Uniswap token is $137 Million, indicating a 7% gain.
Amid the August 2nd half correction, the Uniswap coin price plunged to the $5.7mark. On August 29th, the altcoin rebounded from this 0.618 FIB with a bullish engulfing candle and initiated a relief rally. The bull run with a relatively low volume surged 15.3% higher to retest the $6.62 level potential resistance.
However, on September 6th, the Crypto market witnessed a widespread sell-off which plummeted the largest cryptocurrency-bitcoin below the $19000 mark and triggered a 12% fall in UNI price. As a result, the bearish engulfing candle entirely evaporated relief rally gains and slumped to the $5.7 support.
During press time, the Uniswap coin price is 2% up and shows a long tail hammer-type candle, indicating the traders are vigorously defending this level. If the bullish momentum persists, the altcoin may rebound from this support.
This second reversal from the $5.7 support well validates this level as an active accumulation zone. Thus, the resulting recovery will encourage buyers to surpass the $6.62 resistance. Doing so will suggest the market sentiment has switched from selling on rallies to buying on dips. In addition, the breakout rally will drive the prices 17.3% high to hit the $7.8 mark.
On a contrary note, if the crypto market continues to face selling pressure, the Uniswap coin holders would lose the $5.7 support and prolong the correction fall to the $4.6 demand zone.
EMAs: the bearish crossover between the 50 and 100-day EMA gains a spread as the selling pressure grows. Moreover, the 20-day EMA continues to keep the bullishness growth in check.
RSI indicator: the RSI slope declines within the nearly oversold zone but shows a bullish divergence sparking a reversal possibility.
- Resistance levels- $6.62, $7.8
- Support levels- $5.75 and $4.65
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.