UniSwap Technical Analysis: UNI Hunts For A Bottom As $2.5 Beckons

UniSwap bleeds profusely after rejection from $3.6. Initial support is embraced at $3, but UNI/USD looks primed for losses eying $2.5. UNI, the official token of the decentralized finance (DeFi) platform UniSwap, has lost over 13% of its value in the last 24 hours. The downswing came into the picture following a barrier encountered at The post UniSwap Technical Analysis: UNI Hunts For A Bottom As $2.5 Beckons appeared first on Coingape.

Oct 15, 2020 - 12:56

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UniSwap Technical Analysis: UNI Hunts For A Bottom As $2.5 Beckons

UniSwap bleeds profusely after rejection from $3.6.
Initial support is embraced at $3, but UNI/USD looks primed for losses eying $2.5.

UNI, the official token of the decentralized finance (DeFi) platform UniSwap, has lost over 13% of its value in the last 24 hours. The downswing came into the picture following a barrier encountered at $3.6. Before the retreat, UNI/USD was on a recovery mission from the primary support between $2.5 and $2.6. An impressive price action occurred after the cryptocurrency stepped above the 50 Simple Moving Average in the hourly timeframe.

The downswing from the resistance at $3.6 was unstoppable at various levels, including the $3.4, the 50 SMA, and the 100 SMA. On the bright side, buyers’ congestion at $3 absorbed the selling pressure, giving balance to the DeFi token.

UNI/USD 1-hour chart

At the time of writing, UNI is trading at $3.05 amid a developing bearish momentum. This tells you that selling pressure was not entirely ousted and that UNI is still hunting for formidable support. A bearish divergence by the Relative Strength Index (RSI) from the price hints that breakdown could continue.

If the price pierces through the support at $3.0, losses are likely to continue the primary support between $2.5 and $2.6. Rapid price actions are not expected at the moment due to the low trading volume. However, the bearish cloud still hovers, and the longer UNI takes to recover from the dip to $3, the stronger the bearish grip continues. On the upside, resistance is expected at the 100 SMA, 50 SMA, and the crucial level at $3.6.