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- Uniswap trading near its 6 months low and might attract the attention of investors.
- Short term correction below $5.000 might provide an opportunity for long term investors.
Uniswap price is trading with mild bearish cues and sellers were continuously trying to break the important support level of $5.000. As of now, UNI/USDT is trading at $5.035 with the intraday loss of 3.04% and 24 hour volume to market ratio stood at 0.0129
Will the Uniswap take U -Turn ?
On a weekly time frame, Uniswap had been trading sideways in the wide range between $3.324 to $9.916 and was likely to see a bullish trend reversal from the lower range support. In the mid of June 2022 UNI prices formed a bullish hammer candle from the support zone of $3.330 and prices gained positive momentum and shot up almost 200% from the recent lows and hits highs at $9.830 indicating buyers are active at lower levels. Later, $9.830 acted as a strong hurdle for bulls and triggered minor corrections from the higher levels.
Will Uniswap break the $5 support level?
On a daily time frame, Uniswap is in a short term downtrend and likely to test $5.000 support level soon. In the mid of November, FTX collapse created panic all over the industry which also impacted the UNI prices and dragged the prices down towards $5.000 but bulls were active at lower levels and succeeded to defend the $5.000 level and kept the prices stable in the range between $5.000 to $6.500. As of now, sellers were trying to break to $5.000 support level and prove its dominance in the important support zones.
The 200 day ema (green) indicates the long term trend is still in the bear grip and the 50 day ema (yellow) at $5.713 will act as an immediate hurdle for bulls followed by next hurdle at $6.512 and 7.798. On the lower side, $5.000 will act as an immediate support level and if prices slipped below $5.000 we may see further downside towards $4.000 and below levels. The MACD has generated negative crossover indicating prices may trade with the mild bearish bias whereas the RSI at 36 sloping down denotes prices may test oversold levels.
Summary
Uniswap has been in downtrend and likely to trade with a bearish bias for a short term basis, but probably in coming months Uniswap may try to reverse its trend in the favor of bulls from the lower range support zones of $3.324. So, investors might take this opportunity to accumulate Uniswap at lower levels for the target of $7.798 and above by keeping $4.000 as SL.
Technical levels
Resistance levels : $6.512 and $7.798
Support levels : $4.836 and $3.324
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
