Briefly –
- UNI’s price faced obstacles around $21.51, slowing down its recovery.
- RSI displays a bullish divergence, indicating a 20% upsurge.
- Meanwhile, breaking under $18.37 will nullify the bullish case.
Uniswap sees it price ready for consolidation after meeting a massive resistance obstacle on its path to recovery. Though the slowdown in momentum might be unappealing to market players, it is shaky. For now, traders can expect the token’s consolidation to favor bullishness. With that developments, UNI might shatter some blockades along its recovery ways.
UNI at a Decisive Point
Uniswap witnessed its price crashing by 31% since 16 September and created a momentary bottom near $18.37. The altcoin gained nearly 20% as the overall market moved on recovery mood. However, UNI still remains beneath the resistance at $21.51.
The current consolidation shows an incoming volatility. Meanwhile, the Relative Strength Indicator confirms that traders should wait a bullish rally. On the 6-hour price chart, UNI formed lower lows on 8 September and 21 September. At the same time, the RSI recorded higher lows, suggesting bullish divergence.
This technical set up shows that UNI’ price awaits a surge. Also, the consolidation results might add credence to the uptrend, pushing the alt higher towards the immediate resistances at $21.51 and $23.78 before rallying to $25.38. Such a move constitutes a 20% upswing from the asset’s current value. Though $25.38 can be a challenging obstacles, conquering its will allow UNI to explore higher levels.
Though things seem healthy for Uniswap, failure to overpower the barrier at $21.51 will confirm inadequate buying momentum. With such actions, UNI might sustain downtrend towards $18.37. Uniswap might create a double bottom at this level, translating to a new upsurge.
Meanwhile, a decisive close under this price barrier and failure to recover quickly over it will form a lower low. That will overturn the bullish narrative. That might see UNI retracing 10% to touch the support floor at $16.47.
For now, Uniswap has to take advantage of positive sentiments in the overall market to conquer many obstacles in its recovery road. While writing this article, UNI trades at $21.04 amid slight losses in the past 24 hours.
Ira Lichi / Shutterstock.com
