Uniswap price looks to be consolidating after encountering a stiff resistance barrier on its road to recovery. While this slowdown is unappealing, it is not untenable. Investors can expect this consolidation to resolve in favor of the bulls.
Such a development will likely push UNI to shatter a few blockades along the way,
Uniswap price crashed 31% since September 16 and formed a temporary bottom around $18.37. UNI rallied roughly 20% as the crypto markets recovered but is currently stuck below a resistance barrier at $21.51.
This consolidation hints that a volatile move is around the corner, but the Relative Strength Index (RSI) suggests that it will be a bull rally.
Uniswap price set up lower lows on September 8 and September 21 on a 6-hour chart. However, the RSI created higher lows on the exact dates, flashing a bullish divergence.
This technical formation indicates that Uniswap price is due for a move higher. Moreover, the result of the consolidation is likely to add extra oomph to the upswing, pushing UNI to slice through the immediate barriers at $21.51, $23.78, and making a run at $25.38.
This run-up would be a 20% advance from the current position.
While $25.38 is a formidable blockade, clearing it might allow Uniswap price to venture higher.
Although things are looking up for Uniswap price, a failure to breach past the $21.51 barrier will indicate a lack of follow-up from the buyers. Such a development might result in a downswing to $18.37, where Uniswap price could form a double-bottom and give the uptrend another go.
However, a decisive close below this barrier and a failure to quickly recover above it will confirm the creation of a lower low, invalidating the bullish thesis. In such a situation, UNI will likely retrace 10% to tag the $16.47 support floor.
0 Comments