Uniswap Price Faces Supply Pressure At $6.8; Is Correction Phase Not Over?

The recent correction in Uniswap coin price stalled at the combined support of 0.618 Fibonacci retracement level and $5.7. Over the past two weeks, the altcoin rebounded from this support twice, indicating a high accumulation zone. However, the coin price struggling to surpass the $6.8 resistance creates a narrow range.

Key points from Uniswap analysis:

• The Uniswap price wavering in a no-trading zone
• An evident bullish divergence bolsters the market sentiment towards a $6.8 breakout.
• The 24-hour trading volume in the Uniswap token is $137 Million, indicating a 7% gain.

Source-Tradingview

A second bullish reversal backed by increasing volume activity indicates a genuine recovery in market value. Moreover, the W shape formation reveals a double bottom pattern in the daily time frame chart. Furthermore, this bullish reversal pattern hints the sellers are struggling to continue their downfall, and thus, the replicated bullish momentum turns the table on their side.

Earlier today, the Uniswap price showcased a 7.6% high and gave a bullish breakout from the $6.8 neckline resistance. Thus, this breakout opportunity will offer an early signal for the resumption of prior by hitting the first target of 17.3% higher at $8.

However, the coin price witnessed strong selling pressure at $6.8 resistance, resulting in a long-wick rejection candle. If the daily candle closes below the aforementioned resistance and the prices revert low, the bullish pattern will get invalidated. 

Thus, the coin price resonates between the two high areas of interest(AOI), and the technical chart hints at a minor consolidation phase. Therefore, this zone can be considered a no-trading zone, and its breakout will determine Uniswap’s future price.

Considering the bearish scenario, the breakdown below the $5.7 support will extend the price correction to the $4.6 support zone.

Technical indicator

EMAs: The crucial EMAs(20, 50, and 100) accumulated near $6.8 resistance provide some additional barriers against buyers. 

RSI indicator: Despite a consolidation, the daily RSI slope shows a tremendous rise indicating growth e in underlying bullishness and a higher possibility for a $6.7 breakout.

Resistance levels- $6.8 and $8

Support levels- $5.72 and $4.6