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...
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.
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