NewsletterHere’s Why UNI Price May Resume Its Correction Rally From $7 Mark.
Today, the UNI/USDT pair is trading at $6.67, displaying a 5.71% gain. The bullish breakout from the immediate resistance of $6.65 teases a recovery opportunity for UNI. However, the volume activity is relatively low and thus; reflects a lack of bullish commitment.
Will buyers regain the $6.654 mark, or will the sellers strike back at higher levels?
Key points from UNI analysis:
- A bullish breakout from the $6.65 may stall the prevailing correction
- A bearish crossover between the 50-and-100-day EMA encourages the continuation of price correction
- The 24-hour trading volume in the Uniswap token is $121.3 Million, indicating a 2.78% loss.
Source-Tradingview
The widespread correction in the crypto market reverted the UNI price from the $10 supply zone and caused a 41% retracement. The bearish pullback plunged the price to the shared support of $5.75 and the 0.618 Fibonacci retracement level.
While the crypto market is still uncertain, the UNI price has surged 14% in the past five days and challenges the immediate resistance of $6.5. A bullish breakout from this resistance will give an early signal for the end of the past correction rally.
The breakout rally may surge the prices by 22% and push its $8 resistance. Therefore, until the UNI price is below $8, the chances for the continuation of the retracement rally in fair. However, if prices pierce this resistance, the coin buyers may attempt to surpass the prior swing high($10).
Also read: Uniswap (UNI) Sees 150% In Last Seven Weeks Amid Strong Whale Accumulation, What’s Next?
On the other hand, the recent price recovery is backed by lesser volume, which suggests a possibility of downfall continuation. Thus, if the sellers break the $5.75, the altcoin may plummet 17% lower to $4.8.
Technical indicator
Bollinger band: the indicator’s midline has acted as a strong dynamic resistance during a downtrend. Thus, the coin price may struggle at $7, where the midline is currently wavering.
EMAs: the crucial EMAs(20, 50, 100, and 200) moving at the $7 mark bolster the same cause mentioned above by offering multiple resistances at a particular level.
Vortex indicator: the VI+ and VI- sloped closing in shows the buyers’ attempt to regain trend control. A possible crossover may offer more confirmation for a bullish recovery.
- Resistance levels- $8, $10
- Support levels- $6.55 and $5.75
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