- Uniswap price wavers after bouncing off a three-week low, even as downside momentum remains weak.
- Failure to cross key resistance confluence, neutral RSI and bearish MACD signals lure UNI bears.
- Fortnight-old descending trend channel suggests a gradual downturn, recovery past $10.20 could target month-old horizontal resistance.
- Gradual short-term decline may continue, but reversal of four-month uptrend hinges on $8.70 breakdown.
Uniswap (UNI) price remains lackluster around $9.92 heading into Wednesday’s U.S. trading session, struggling to defend Tuesday’s rebound from a three-week low.
That said, bearish signals from the Moving Average Convergence Divergence (MACD) indicator and nearly neutral 14-day Relative Strength Index (RSI) favor the UNI sellers.
Still, declining trading volume and market capitalization suggest weaker participation, restricting a strong fall in Uniswap price. According to Santiment, UNI’s daily trading volume drops to a three-day low of $452.41 million, while the market cap also retreats to $6.20 billion.
Notably, multiple upside hurdles and a short-term bearish trend channel keeps the sellers hopeful. However, the gradual uptrend since early April remains intact unless the UNI drops below the $8.70 key support level.
Uniswap Price: Daily Chart Keeps Sellers Hopeful
Uniswap’s recovery from a three-week low fades beneath the $10.10-$10.20 resistance confluence comprising the 50-day Simple Moving Average (SMA) and a two-month-old previous support line.
The UNI’s failure to cross the key resistance joins bearish MACD signals and nearly neutral RSI line, close to 50.00, to suggest a continuation of the latest retreat in the prices.
This highlights Tuesday’s low of $9.57 as immediate support luring the short-term sellers. However, multiple levels marked since early February, close to $8.70, appears a tough nut to crack for Uniswap bears afterward.
If the UNI sellers manage to smash the $8.70 support, its four-month uptrend will be at risk, which in turn highlights the 200-day SMA of $7.57, June’s low of $5.95 and the yearly low around $4.55 marked in April.
Conversely, a daily closing beyond $10.20 will allow the UNI buyers to aim for the $11.00 threshold.
However, a month-old horizontal resistance surrounding $11.70 could restrict the quote’s further upside, a break of which will shift the market’s attention toward the monthly high of $12.28, and the yearly peak of $15.64.
Uniswap Price: Four-Hour Chart Favors Short-Term Sellers
On the four-hour chart, a two-week descending trend channel joins the quote’s sustained trading beneath the 50-bar and 200-bar SMAs to favor sellers.
Adding to the downside bias are the bearish MACD signals. Still, the RSI’s rebound from the oversold boundary of 30.00 points to a potential intermediate bounce.
Given the UNI’s struggle to defend Tuesday’s rebound, intraday sellers are keeping eyes on the stated falling trend channel’s bottom, currently around $9.47, a break of which will highlight the key $8.70 horizontal support and deeper levels from the daily chart.
Meanwhile, a convergence of the 50-bar and 200-bar SMAs, close to $10.45-$10.50, guards the UNI’s immediate upside before the bearish channel’s top, near $11.30.
Should Uniswap buyers defy the descending trend channel with a successful crossing of the $11.30 hurdle, a month-old rising trend line around $12.65 will be the last defense of sellers before directing bulls toward the higher levels discussed on the daily chart.
Conclusion
Uniswap is facing some selling pressure in the short term, with slowing momentum, a bearish trend channel, and several resistance points weighing on its price.
However, the UNI’s overall upward trend from April is still holding strong, as long as the price stays above the important $8.70 support level, giving confidence to long-term investors.
Also read: U.S. DOJ Eases Concerns for Developers, Pledges to Target Bad Actors in Crypto
