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The UNI/USDT pair has been struggling to take support at the crucial support level of $5.72 as the increasing selling pressure teases a breakdown. However, the RSI indicator projects the possibility of a reversal with a lower price rejection as it displays a bullish divergence. So, should you consider booking your profits before the bearish breakout, or will the Uniswap buyers sustain dominance at the $5.72 mark?
Key points from UNISWAP analysis:
- The UNI buyers obtain suitable support from the $5.7 mark.
- A bullish RSI divergence suggests weakness in bearish momentum
- The 24-hour trading volume in the Uniswap token is $137 Million, indicating a 7% gain.
Source-Tradingview
Amid the August 2nd half correction, the Uniswap coin price plunged to the $5.7mark. On August 29th, the altcoin rebounded from this 0.618 FIB with a bullish engulfing candle and initiated a relief rally. The bull run with a relatively low volume surged 15.3% higher to retest the $6.62 level potential resistance.
However, on September 6th, the Crypto market witnessed a widespread sell-off which plummeted the largest cryptocurrency-bitcoin below the $19000 mark and triggered a 12% fall in UNI price. As a result, the bearish engulfing candle entirely evaporated relief rally gains and slumped to the $5.7 support.
During press time, the Uniswap coin price is 2% up and shows a long tail hammer-type candle, indicating the traders are vigorously defending this level. If the bullish momentum persists, the altcoin may rebound from this support.
This second reversal from the $5.7 support well validates this level as an active accumulation zone. Thus, the resulting recovery will encourage buyers to surpass the $6.62 resistance. Doing so will suggest the market sentiment has switched from selling on rallies to buying on dips. In addition, the breakout rally will drive the prices 17.3% high to hit the $7.8 mark.
On a contrary note, if the crypto market continues to face selling pressure, the Uniswap coin holders would lose the $5.7 support and prolong the correction fall to the $4.6 demand zone.
Technical indicator
EMAs: the bearish crossover between the 50 and 100-day EMA gains a spread as the selling pressure grows. Moreover, the 20-day EMA continues to keep the bullishness growth in check.
RSI indicator: the RSI slope declines within the nearly oversold zone but shows a bullish divergence sparking a reversal possibility.
- Resistance levels- $6.62, $7.8
- Support levels- $5.75 and $4.65
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