UNI Technical Analysis: Sellers Breaking Trendline Warns 15% Drop
Table of contents
Key Technical Points:
Past Performance of UNI
The Uniswap (UNI) prices reverse from the $9.28 resistance level after multiple bullish attempts to rise above the 200 days EMA. The resulting downtrend accounts for a 15% drop over the last week resulting in the support trend line fallout. Moreover, the downtrend threatens a drop below the psychological mark of $8 and 50 and 100-day EMAs to test the $6.73 support level.
Source - Tradingview
UNI Technical Analysis
The UNI price action displays a high number of long wick candles tightening the downtrend continuation in the daily chart. Moreover, the spike in trading volume supporting the downtrend projects a rise in selling pressure.
The bullish crossover of the 50 and 100 days EMA struggles to gain a bullish spread due to the recent bearish divergence in the market price. Moreover, the said EMAs are the following bullish levels that may cushion the falling trend.
The daily RSI slope breaks under the halfway line reflecting an increase in the underlying bearishness. Moreover, the MACD indicator displays a declining trend in the fast and slow lines gaining spread as the negative histograms intensify. Hence the technical indicators go hand-in-hand with the downtrend continuation theory.
In a nutshell, the UNI Technical Analysis projects a high likelihood of a price drop to the $6.75 support level.
Upcoming Trend
The upcoming trend in the UNI prices may shortly fall below the supporting EMAs to test the $6.75 support level.
On the contrary, with a bullish reversal breaking above the $8.15 mark, an uptrend might re-challenge the $9.25 resistance level.
Resistance Levels: $8.15 and $9.25
Support Levels: $8 and $6.75