After hitting resistance at $19.30, the price of Uniswap has undergone a slight pullback toward $18.
The technical setting continues to favor Uniswap’s upward movement.
UNI is benefiting from the current risk-on climate, and the fundamentals still favor it heading higher.
Last night, the Uniswap price reached $21 before falling to $18. All technical and fundamental indicators continue to favor UNI’s upward movement.
Last night, the Uniswap price reached a critical level of $19.30. This level was last spotted on June 21 and hasn’t been tested since. The $19.30 rejection and subsequent decline appear to be conventional, with short-term profit-taking and the Uniswap price now seeking support where buyers will return.
UNI has three times respected the blue ascending trend line from a technical standpoint. A bounce off that trend line would encourage buyers to enter, and the Uniswap price would rise near $19.30 once more. The level UNI is searching for is approximately $18, which is a psychological level as well as the Fibonacci level of 23.6 percent. There are three technological reasons to invest in UNI.
UNI can go back to $19.30 for a retest once it bounces off that blue trend line. That would be the third test, which would almost certainly break to the upside. Even if it does not break higher, we will enter a triangle technical setup, which will squeeze UNI higher. It’ll only be a matter of time before UNI gets its $19.30 back.
The RSI also favors the long UNI, with the RSI hovering around 55, indicating that the market is neither overbought nor oversold. With the recent overall risk-on mentality, momentum is clearly in favor of the Uniswap price heading higher.
The profit objective is $21.05, which was established on June 13 with a triple bottom and on June 21 with support following an initial test to the downside by Uniswap price. $21.05 became resistance with two rejections to the downside only after the obvious break lower, and UNI has not recovered since.
The level appears to be in good shape for a retest.
4 hour chart of the UNI/USD
However, the mood in the marketplace this morning is gloomy. Markets are unsure where to look for direction, and the risk-on tone that has supported the Uniswap price in the past may not be present today. UNI will dip down toward $17 and look for a bounce from the orange descending trend line if the blue trend line and the level at $18 break to the downside. If even the orange trend line and $17 fail to hold, expect a retest of $15./n
