Uniswap has been showing tight trading conditions for the past 24 hours. The coin consolidated and saw minor losses over the past day. Although Uniswap has performed well over the past week, gaining over 30%, recently the bulls seem to be resting.
Recently, UNI broke above the $6.00 mark and may now be aiming for the $8.00 price cap. Buying strength showed a slight decline, but buyers still outnumbered sellers in the market. Bitcoin’s price action has helped many altcoins rally, but continued support from buyers remains crucial.
From the technical indicators, however, it looks like UNI could be hovering around the same price zone at least for the next few trading sessions. After the rally, the possibility of a pullback cannot be ruled out. Currently, UNI has not witnessed a pullback, but consistent consolidation could take the coin to the nearest support level.
If it manages to clear its immediate resistance, UNI has a chance to trade beyond the $8.00 mark.
Uniswap Price Analysis: Four-Hour Chart
UNI was trading at $7.41 at press time and the coin was still bullish on its chart. The current consolidation range was between $7.33 and $7.49 respectively. A slight push from the buyers could help Uniswap break above the $7.57 resistance mark.
If that happens, reaching $8.00 becomes easy and there could be a chance that UNI is trading above the $8.00 mark. On the other hand, the local support for the coin was $7.08 and then $6.47. A break below $6.47 will push Uniswap close to $5.38. UNI’s traded volume declined slightly, indicating a slight easing in buying pressure.
UNI has witnessed increasing buying strength on the chart since the coin’s rally. There is a small drop in the number of buyers, although the buyers still control the market. The relative strength index was above the half line and that meant the buying pressure was higher than the selling pressure.
UNI’s price was also above the 20-SMA line, signaling that the buyers were driving the price momentum in the market. UNI was also above 50-SMA and 200-SMA, which meant the coin was trading on bullish momentum.
UNI was positive in terms of purchasing power, but some indicators suggested otherwise. Chaikin Money Flow determines capital inflows and outflows from the asset. Chaikin Money Flow was below the half line and that meant lower capital inflows. Moving Average Convergence Divergence represents price momentum and a change in price trend.
MACD underwent a bearish crossover and red histograms were seen below the half line. This reading is tied to a change in the current price direction over the next few trading sessions and also a sell signal. If Uniswap is to remain in the bullish zone, buyers must be present with support from the broader market.
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Featured image from Forbes India, chart from TradingView.com