Key Takeaways:
- UNI price started a recovery wave above the $5.20 and $5.50 resistance levels.
- It is facing a key bearish trend line with resistance near $7.10 on the daily chart.
- The price could start a strong rally if it manages to clear $6.75 and then $7.10.
UNI price climbed above $5.50. The price is holding gains, but it must clear the $7.10 barrier to start a fresh rally in the near term.
Uniswap’s UNI Price Faces Hurdles
Earlier this month, UNI price saw a major decline from the $7.75 resistance zone against the US Dollar. The price declined heavily below the $7.10 and $6.20 support levels.
The bears were able to push the price below the $5.50 support zone and the 50-day simple moving average (blue). It even spiked below the $5.0 level before the bulls appeared near $4.75. A low was formed near $4.755 before the price started a recovery wave.
Uniswap’s price daily chart | Source: UNIUSD on TradingView.com
There was a correction wave above the $5.0 and $5.20 resistance levels. It even spiked above the 50% Fib retracement level of the downward move from the $7.770 swing high to $4.755 low, outperforming ethereum and bitcoin.
Fresh Rally?
On the upside, the price is facing resistance near the $6.50 zone and the 50-day simple moving average (blue). It is near the 61.8% Fib retracement level of the downward move from the $7.770 swing high to $4.755 low.
The next major resistance could be near the $7.0 level. There is also a key bearish trend line forming with resistance near $7.10 on the daily chart. A clear move above the $7.0 and $7.10 resistance levels might start another rally.
In the stated case, the price might test $7.75. Any more gains might send the price towards the $10.0 level. If not, thee price might start another decline below the $6.00 level. The first major support is near the $5.50 zone.
The next major support is near the $5.00 zone. Any more losses could open the doors for a move towards the $4.20 support zone or even $4.00.
Overall, UNI price is moving higher above the $6.0 level. If the bulls gain strength, they might be able to pump the price above $7.10 to start a strong rally. Conversely, the current wave might fade and the price could dive back to $5.00 in the coming sessions.
