UNI Technical Analysis: Bullish Rally Or Just Another Lower High Peak?
Uniswap is aiming to keep the trading of tokens automated and accessible to everyone who has tokens, while also increasing the performance of trade in comparison to those on traditional exchanges. It improves efficiency by addressing problems with liquidity using automated solutions. It eliminates the challenges that caused problems for the first decentralized exchanges.
In September 2020, Uniswap moved one step further by establishing and distributing the governance token of its own, UNI, to past protocol users. This brought both potential profits and the possibility for users to influence the future of the protocol, which is a major benefit of decentralized organizations.
Let us move ahead to read about UNI technical analysis.
Past Performance of UNI
The UNI coin price finds demand near the $10 support level as it creates another lower low to fuel the correction phase. The newfound demand resulted in a 15% increase in the past 72 hours. Hence, the retracement might soon retest the fallout of the $14 horizontal zone.
UNI Technical Analysis
The UNI coin price action gives a rounding bottom breakout with the reversal from $10. Therefore, a retracement to retest the fallout of $14 and create a lower high formation is possible.
The crucial Exponential Moving averages maintain a bearish alignment in the daily chart. Moreover, the 50-day average provides dynamic resistance to keep the bullish growth in check.
The MACD indicator shows the MACD and signal line merging in the daily chart as they attempt to give a bullish crossover. Moreover, the falling trend of bearish histograms indicates the potential retest.
The DMI indicator shows the -DI line continues to approach the +DI line as it crosses below the ADX line. Therefore, the indicator reflects a possible reversal in the trend if the lines give a crossover.
Therefore, the technical indicators reflect a rising underlying bullishness to reach the 50-day EMA. However, the UNI coin price action hints at a reversal near the $14 mark.
Upcoming Trend
The UNI technical analysis finds demand near $10, resulting in the rounding bottom breakout as it jumps multiple points in the past 72 hours. However, the growing trend might struggle to reach above the $14 zone.
The price action showcases crucial resistance levels at 50-day EMA and the $14 zone that can crush the bullish attempt. However, with the breakout above the mentioned resistance levels, a bull run to $20 is possible.
At the time of issue, the TradingView Widget gives a "SELL" signal for the UNI token.