Disclaimer: The findings of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Uniswap has been in recovery mode since a bearish setup triggered a nearly 13% drop to a weekly low of $ 25.4. UNI now has to clear the levels that collapsed during its mid-May run to rekindle a favorable near-term outlook.
At the time of writing, UNI was trading at $ 29.39, an increase of 6% in the last 24 hours.
4 hour Uniswap chart
A widening gap pattern resulted in a 13% collapse as UNI headed towards the bottom of its lower trend line of $ 25.4. Since then, the price has reversed above 20-SMA (red) and 50-SMA (yellow). What’s more, the same thing seemed to be considering a rally above the key $ 30- $ 31.2 resistance zone.
A close above this limit would allow UNI to target swing highs of $ 32.6 and $ 35. In the same way, short sellers can be removed from the picture. Conversely, a failed breakout attempt would likely cause UNI to trade near $ 29 before attempting its next attempt at the aforementioned resistance level.
The Relative Strength Index has recovered well from a low of nearly a month. A move above 60 validated a steady uptrend and confirmed EOS price action.
The Awesome Oscillator maintained its position above the midline after falling to its lowest level since late July. At the time, UNI was trading around $ 15. The MACD also moved into a favorable position as a result of constant buying pressure in the market.
UNI indicators suggested that market dynamics were returning to the upside after some lows were seen last week. However, UNI must close and stay above $ 30- $ 31.2 for more pronounced gains going forward.
Interestingly, the daily chart pointed to a gold cross between the 20-SMA and the 200-SMA and the long-term outlook for UNI was bright. For traders, UNI would be a safe bet with great upside potential and only limited downside.
This is a machine translation of our English version.
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