- Uniswap price drops 2.0% as bears tighten grip after snapping two-week uptrend.
- Downside break of six-week support and sustained trading below key EMA keep UNI bears optimistic.
- Oversold stochastic and mixed trading volume suggest short-term consolidation in the Uniswap price.
- UNI sellers keep eyes on the seven-month horizontal support; recovery remains elusive below the 200-day EMA.
Uniswap (UNI) price remains under pressure around $6.20, down almost 2.0% intraday early Thursday morning in New York, as bears keep the reins after snapping a two-week uptrend. In doing so, the UNI trims the first monthly gain in three while staying on the way to posting a yearly loss, its first since 2022.
The altcoin’s latest weakness could be linked to a clear downside break of the six-week support line, now resistance, as well as sustained trading beneath the 200-day Exponential Moving Average (EMA).
However, oversold conditions in the stochastic momentum indicator and the presence of multiple support levels can challenge the UNI bear’s dominance from time to time.
On the same line, sluggish trading volume and market capitalization (market cap) also raise doubts on UNI’s immediate bearish outlook. According to Santiment, Uniswap’s daily trading volume snaps a two-day losing streak, but remains weak around $307.08 million as the market cap retreats from a two-week low to $3.91 billion as we write.
Notably, the UNI’s four-hour chart also challenges the short-term bearish bias, even as the broad outlook remains favourable to the sellers.
Uniswap Price: Daily Chart Keeps Sellers Hopeful
Uniswap’s daily chart looks bearish as the price extends the previous week’s downside break of an ascending support line from early October, now resistance.
Also keeping the UNI sellers hopeful is the quote’s sustained trading below the 200-day EMA and key Fibonacci Retracement levels of its August-October downturn.
Even so, the overheated conditions of the stochastic momentum indicator, well beneath the 20.00 oversold limit, could restrict short-term UNI downside near the $6.00 round figure.
Should the quote break the $6.00 immediate support, the lower Bollinger Band (BB) near $5.30 may act as an intermediate halt before directing bears to a horizontal area from early April, close to $4.75-$4.56.
Notably, Uniswap’s daily closing beneath the $4.56 makes it vulnerable to slump toward October’s yearly low of $2.32.
On the contrary, the UNI’s corrective bounce remains elusive as long as the price stays beneath the support-turned-resistance line from October, close to $6.90.
Also acting as a short-term challenge for the Uniswap buyers is the middle BB of $6.95 and the $7.00 round figure.
Beyond that, the 200-day EMA and the upper Bollinger Band, respectively near $7.82 and $8.64, could act as the final line of defense for the UNI bears ahead of trying to restore the broad bullish trend and reverse the yearly loss.
Uniswap Price: Four-Hour Chart Suggests Further Pullback
On the four-hour chart, Uniswap takes offers to reverse the early-day break of a fortnight-old resistance line, now support near the $5.85 mark.
Notably, the stochastic is not that oversold on the four-hour chart, and hence there are fewer hurdles for the UNI sellers.
This highlights the 61.8% Fibonacci retracement of its October-November upside, close to $5.37, as well as the monthly low of $4.47, as immediate support to watch for the UNI bears, before concentrating on the daily chart’s deeper levels.
Conversely, the UNI’s rebound needs validation from the 200-bar EMA hurdle of $6.71 to approach the higher levels discussed on the daily chart.
Conclusion
A clear downside break of the multi-week support and sustained trading beneath the 200-day EMA keeps the Uniswap price on the bear’s radar, despite oversold stochastic on the daily chart.
Notably, any surprises from the macro front may join the overheated momentum indicator to trigger short-term buying, but the broad bearish trend prevails as long as the price stays beneath the 200-day EMA.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP Tumble on Fed Buzz; More Pain Ahead?
