Since the ATH’s decline last year, Uniswap (UNI) bulls have shown resistance near $23.6 but failed to counter the mounting selling pressures seen in recent months.
Moving forward, a likely close above the 20 EMA (red) would provide opportunities for a test of the $9-$10 range. After this, UNI would aim to retest its long-term trendline support (white, dashed). As of going to press, UNI was trading at $8.78, up 6.3% in the past 24 hours.
UNI Daily Chart
Since losing $23.6, the UNI bulls have been unable to propel a trend-changing rally. The alt was down 68.6% (as of November 16) and reached its all-year low on February 24.
Since then, all recovery attempts by the alt have been shunned by the 20 EMA and the upper trendline of the long-term falling wedge. In recent days, buyers have built up some pressure around the tip of the falling wedge. While the price saw a bullish divergence from the RSI, the recent candlesticks tested the $9 mark.
The $8 base is a confluence of the 16-month trendline support and the horizontal support. Thus, buyers would like to step in and defend this brand while initiating a near-term recovery. Any close above $9 would trigger a test near the 50 EMA (cyan). While a reversal within the current pattern could retest the trendline support before a recovery to the above level occurs.
The RSI has been in an uptrend for the past three weeks as the price has marked lower and lower declines. So this confirms a bullish divergence. Now the chance of a retest in the midline in the coming days is higher.
Also, the gap between the DMI lines has improved in favor of the buyers. But there was still a crossover to come. With ADX (directional trend) weakening, the next pair of candlesticks would be critical in determining the pattern break opportunities.
Following a recent bullish divergence and the improved buying impact on its technical characteristics, UNI could see a break above its 20 EMA. In that case, a test towards the $9-$10 range would be likely before conforming to the downtrend.
In addition, the alt shares a 30-day correlation of 77% with the king coin. So keeping a close eye on Bitcoin’s movement would be inevitable to make a profitable move.
This post Mapping the chances of Uniswap trying to make a turnaround
was published first on https://ambcrypto.com/mapping-out-the-odds-of-uniswap-attempting-a-reversal-of-the-downtrend/