Since the ATH’s decline last year, Uniswap (UNI) bulls have shown resistance near $23.6 but failed to counter the mounting selling pressures seen in recent months.
Moving forward, a likely close above the 20 EMA (red) would provide opportunities for a test of the $9-$10 range. After this, UNI would aim to retest its long-term trendline support (white, dashed). As of going to press, UNI was trading at $8.78, up 6.3% in the past 24 hours.
UNI Daily Chart
Since losing $23.6, the UNI bulls have been unable to propel a trend-changing rally. The alt was down 68.6% (as of November 16) and reached its all-year low on February 24.
Since then, all recovery attempts by the alt have been shunned by the 20 EMA and the upper trendline of the long-term falling wedge. In recent days, buyers have built up some pressure around the tip of the falling wedge. While the price saw a bullish divergence from the RSI, the recent candlesticks tested the $9 mark.
The $8 base is a confluence of the 16-month trendline support and the horizontal support. Thus, buyers would like to step in and defend this brand while initiating a near-term recovery. Any close above $9 would trigger a test near the 50 EMA (cyan). While a reversal within the current pattern could retest the trendline support before a recovery to the above level occurs.
rode
The RSI has been in an uptrend for the past three weeks as the price has marked lower and lower declines. So this confirms a bullish divergence. Now the chance of a retest in the midline in the coming days is higher.
Also, the gap between the DMI lines has improved in favor of the buyers. But there was still a crossover to come. With ADX (directional trend) weakening, the next pair of candlesticks would be critical in determining the pattern break opportunities.
Conclusion
Following a recent bullish divergence and the improved buying impact on its technical characteristics, UNI could see a break above its 20 EMA. In that case, a test towards the $9-$10 range would likely be before conforming to the downtrend.
By the way, the alt shares a 77% 30-day correlation with the king coin. So keeping a close eye on Bitcoin’s movement would be inevitable to make a profitable move.