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- Uniswap price had reclaimed the 50-day EMA and attempting to break out of the 200-day EMA
- Uniswap price formed a double bottom bullish reversal pattern but struggles at the neckline hurdle
Uniswap price is trading with the bullish cues and bulls are trying to hold the prices above the 50-day EMA to show its presence on the lower levels. However, the technical indicators are turning bearish in the favor of the bears. Therefore, it will be interesting to see how the price reacts in the coming sessions. Currently, The pair of UNI/USDT was trading at $6.364 with intraday gains at 1.08%, and the 24-hour volume-to-market cap ratio at 0.0254
Uniswap prepares to break the narrow range?
On a daily time frame, Uniswap price has formed a double-bottom bullish reversal pattern and bulls are trying to break out of the neckline resistance level. At the beginning of January, UNI price took support at the $5.000 level and reversed upward with positive momentum. Later the market sentiment improved and bulls succeeded to reclaim the price above the 50 day EMA which created hope for investors.
The UNI price took a halt at $7.00 and formed a rejection candle from the supply zone indicating the bears are still active on the higher levels. The 200-day EMA is acting as an immediate hurdle for bulls followed by the next hurdle at $7.804. However, if crypto market sentiment remains positive then the probability of positive breakout increases, and UNI investors can see $10.00 before the first quarter of 2023 ends.
The technical indicators of Uniswap are reversing down and prices seem to be lacking momentum. However, if any minor sell-off triggers from the supply zone then $6.00 and $5.50 will act as a demand zone for bulls and traders might look for accumulating at the lower levels. The MACD is on a way to generate a negative crossover which can create trouble for short-term traders whereas the RSI at 54 sloping sideways denotes the balance between the bullish and bearish positions.
Summary
The UNI price is quite stable and trading in the narrow range but if the market sentiment remains positive then UNI can outperform in the coming months. The technical analysis suggest that price will consolidate for some time before deciding the further direction. However, any minor dips towards support level will provide a buying opportunity for the short-term traders. Therefore, it’s better to look for buying near the support levels mentioned above for the target of $8.000 by keeping $5.000 as SL.
Technical levels
Resistance levels: $8.000 and $10.00
Support levels: $5.500 and $5.000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
