The price of Uniswap (UNI) is in a gentle uptrend, approaching a new high of $27. The cryptocurrency faced resistance at the $22 high, but fell back to and recovered from the $20 support.
The strong bounce catapulted the altcoin to previous highs. Nevertheless, the upward movement of UNI is doubtful as the market is reaching the overbought zone.
The uptrend could continue if the price falls above the moving averages. In the overbought area, the sellers will show up and push the prices down. On the other hand, if the price declines, the market will fall to the $22 support. Meanwhile, the altcoin is on the retreat after reaching the high of $26.96. In the August 1 uptrend, a bearish candle tested the 78.6% Fibonacci retracement level. The retracement suggests UNI will rise but reverse at the 1.272 Fibonacci extension level, or $25.64.
Uniswap indicator reading
UNI is at the 74 level of the Relative Strength Index for period 14. The cryptocurrency has reached the overbought area of the market. The altcoin may not have enough room to move higher. Moreover, sellers are attracted to the overbought region. Also, the altcoin is above the 80% area of the daily stochastic. This suggests that the cryptocurrency is in the overbought region of the market.
Technical indicators:
Major Resistance Levels – $55.00 and $57.00
Major Support Levels – $22.00 and $20.00
What is the next direction for Uniswap?
UNI/USD is in an uptrend. The cryptocurrency is seeing a decline after hitting a high of $27. The uptrend will continue if the price exceeds the recent high. However, if the price declines and falls below the moving averages or the trend line, the selling pressure will increase again.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
