UniSwap Technical Analysis: UNI Hunts For A Bottom As $2.5 Beckons

John Isige
October 15, 2020
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Uniswap Alternatives
  • UniSwap bleeds profusely after rejection from $3.6.
  • Initial support is embraced at $3, but UNI/USD looks primed for losses eying $2.5.

UNI, the official token of the decentralized finance (DeFi) platform UniSwap, has lost over 13% of its value in the last 24 hours. The downswing came into the picture following a barrier encountered at $3.6. Before the retreat, UNI/USD was on a recovery mission from the primary support between $2.5 and $2.6. An impressive price action occurred after the cryptocurrency stepped above the 50 Simple Moving Average in the hourly timeframe.

The downswing from the resistance at $3.6 was unstoppable at various levels, including the $3.4, the 50 SMA, and the 100 SMA. On the bright side, buyers’ congestion at $3 absorbed the selling pressure, giving balance to the DeFi token.

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UNI/USD 1-hour chart

UNI/USD price chart
UNI/USD price chart by Tradingview

At the time of writing, UNI is trading at $3.05 amid a developing bearish momentum. This tells you that selling pressure was not entirely ousted and that UNI is still hunting for formidable support. A bearish divergence by the Relative Strength Index (RSI) from the price hints that breakdown could continue.

If the price pierces through the support at $3.0, losses are likely to continue the primary support between $2.5 and $2.6. Rapid price actions are not expected at the moment due to the low trading volume. However, the bearish cloud still hovers, and the longer UNI takes to recover from the dip to $3, the stronger the bearish grip continues. On the upside, resistance is expected at the 100 SMA, 50 SMA, and the crucial level at $3.6.

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Key Intraday Levels

Spot rate: $3.05

Relative change: -0.05

Percentage change: -1.7

Trend: Bearish

Volatility: Low

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.