UNI Technical Analysis: Falling Prices May Break $5.7 For 20% Drop

Today, the UNI prices are trying to gain traction at the critical support level of $5.72 as growing selling pressure suggests a bearish breakthrough. The RSI indicator predicts a reversal with a lower price rejection since it shows a positive divergence. So, should you consider taking gains before the bearish breakthrough, or will the buyers maintain their control around $5.72?

Key Points:

Source - TradingView

UNI Technical Analysis

On August 29th, the UNI price reverted from the $5.7 support level with a bullish engulfing candle of 10%. Thus, starting a consolidation range with the overhead resistance of $6.75. However, the recent correction with a bearish engulfing candle drops the prices to the crucial support level of $5.7 with an 11% fall.

The downfall comes with a spark in the intraday trading volume, supporting the possibility of a bearish breakout. However, the bearish follow-through candle shows low price rejection and halts the current correction phase.

The downturn below the $5.7 support level will result in a 20% price drop to the crucial support level of $4.5. Conversely, a bullish reversal may prolong the consolidation range with an overhead resistance of $6.75.

Technical Indicators

EMAs: The crucial EMAs (20, 50, 100, and 200) displace the bearish crossover between the 50 and 100-day EMA and gains a bearish gap reflecting an increase in underlying bearishness.

MACD Indicator: The fast and slow lines of the MACD indicator display a lateral trend after the recent merger, failing to give a bullish crossover.

RSI Indicator: The RSI slope displays within the nearly oversold zone but a bullish divergence between the last two dips at the $5.72 support level.

Hence, the technical indicators support the bullish reversal chance in UNI prices with a lower price rejection.

Resistance levels - $6.75 and $10

Support levels - $5.75 and $4.5