UNI price turned red and fell below the $10.00 support. Uniswap is showing many bearish signs and its recovery could encounter hurdles around $10.00.
- UNI started a new decline below the $10.00 support zone.
- The price is trading below $9.50 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance around $10.25 on the 4-hour chart of the UNI/USD pair (Kraken data source).
- The pair could recover, but upside could remain limited above $10.00.
UNI price is affected
After the SEC news, UNI started a big decline. There was an increase in selling pressure on Uniswap below the $12.00 pivot level. The price fell by more than 15% and traded below the USD 10.00 support. It also increased pressure on Bitcoin and Ethereum.
There was also a decline below the $9.20 level. The price traded as low as $8.72 and is still showing many bearish signs. There is also a major bearish trendline forming with resistance around $10.25 on the 4-hour chart of the UNI/USD pair.
The UNI price is now trading well below $10.00 and the 100 simple moving average (4 hours). The immediate resistance on the upside is near the $9.45 level. It is close to the 23.6% Fib retracement level of the downward move from the $11.79 swing high to the $8.72 low.
The next major resistance is near the $10.25 level or trendline. It coincides with the 50% Fib retracement level of the downward move from the $11.79 swing high to the $8.72 low.
Source: UNIUSD on TradingView.com
A close above the $10.25 level could open the doors for more gains in the near term. The next major resistance could be near $11.80, above which bulls are likely to aim for a test of the $12.00 level. Any further gains could send UNI to $13.50.
Lose more with Uniswap?
If the UNI price fails to rise above $9.45 or $9.50, it could continue to decline. The first major support is near the $8.70 level.
The next major support is near the $8.50 level. A downside break below the USD 8.50 support could open the doors for a push towards USD 7.65.
Technical indicators
4-hour MACD – The MACD for UNI/USD is gaining strength in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for UNI/USD is below the 25 level.
Major support levels – $8.70, $8.50 and $7.65.
Major resistance levels – $9.45, $10.00 and $10.25.
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.