The Uniswap price has passed the first test of this rally and is now free from its downtrend. However, presently UNI is failing the second test at $20.00.
Uniswap is trading at $18.27, down $0.9383 (-4.77%).
Currently, Uniswap is the 10th largest cryptocurrency and has a $10.7 billion market cap, around $5 billion short of 9th-placed Polkadot.
Earlier this month, the broad sell-off experienced by the crypto market took the Uniswap price down to its $12.90 support. The resulting rebound over the last 10 days had by yesterday added 47% back onto UNI’s value.
Furthermore, the price cleared the resistance of a descending trend line from the infamous May 19th collapse. Unfortunately for the bulls, my earlier prediction that overcoming $20.00 would be a Herculean task has so far proved to be right.
The highlighted $19.90 resistance was validated yesterday when the price reversed sharply from its $19.88 high. Therefore, this reinforces the significance of this horizontal resistance.
Clearly, this is the immediate barrier the Uniswap price must clear to progress higher. Additional resistance can be seen at the 200-day moving average at $22.92 and the 500 DMA at $24.14.
The first line of support is the downtrend at $17.50, which up until Tuesday was acting as resistance.
If UNI falls back into this downtrend, the $12.90 double-bottom support is a logical target. I would consider this a critical area, and a failure to hold this level could result in broad liquidation.
That being said, I don’t see anything that leads me to believe this is likely at the moment. So, for now, the crypto market and subsequently Uniswap remains in the same wide consolidation pattern that has been in place following May’s rapid decline.
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