Uniswap Consolidates Above $20 Support, Poises to Resume Upside Momentum
Uniswap (UNI) price has fallen above the $20 support as the price again consolidates above it. The cryptocurrency had previously hit a peak price of $23.29 on July 7, but the bulls failed to maintain bullish momentum above the $23 high.
Consequently, after a second retest at resistance, Uniswap sank low to $20. UNI fell below previous resistance at $21.50.This was the resistance that was broken before reaching a peak price of $23.29.
After the recent drop, buyers retested the resistance at $21.50 to break it. The UNI upside is possible if buyers can push the cryptocurrency above the $21.50 and $23 resistance levels. Uniswap (UNI) will reach a new high of $26 if the buyers are successful above the resistance levels. Conversely, the cryptocurrency will drop to $15 or $13 low if buyers fail to take the initiative. UNI /USD is trading at $20.98 at the time of writing.
Uniswap indicator reading
The recent bullish momentum is likely to continue if the price breaks above the descending channel resistance line. The cryptocurrency price has risen above the 21-day line SMA but faces resistance from the 50-day line SMA. For the cryptocurrency to resume its upward momentum, the price needs to break above the SMAs. UNI has risen to the 50 level of the Relative Strength Index Period 14. It indicates that there is a balance between supply and demand.
Major Resistance Levels – $55.00 and $57.00
Major Support Levels – $22.00 and $20.00
What is the next direction for Uniswap
Uniswap is consolidating above $20 support for a possible upside move. Meanwhile, on the 4th of July uptrend, a retraced candle body tested the 50% Fibonacci retracement. The retracement suggests that UNI is likely to rise to the 2.0 Fibonacci Extension level or the $25.77 level. From the price action, it appears that the upward movement will meet resistance at the high of $21.50.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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