Uniswap price has gained +4.5% today in directionless trade. However, a bearish ‘death cross’ may signal trouble for the bulls.
Uniswap is last trading at $22.7700, higher by $0.9355 (+4.33%).
UNI currently has a market cap of just north of $13 billion, which ranks it as the 10th largest crypto asset behind Polkadot’s $23 valuation of $23 billion.
The Uniswap price has followed the rest of the crypto market sideways over the last month. The liquidation witnessed in May has drained the market of interest and liquidity.
This is hardly surprising, considering the scale of the price gains at the start of the year.
UNI rallied 1140% from Jan 1st to May 5th. However, it has since lost just over half of its $48.1200 high.
So, in theory, Uniswap is either relatively expensive compared to last year or relatively cheap compared to last month. I believe this is what Einstein was alluding to in his theory of relativity…however, I would need to fact-check that.
This is the dilemma facing cryptocurrency markets. Valuations are, for the most part, a leap of faith. On that basis, we rely more on technical analysis than fundamentals.
The daily chart gives almost no clues as to where the price is heading next. UNI is sitting at the mid-point of a symmetrical triangle. Additionally, the trading volumes show no bias to either direction.
However, the moving averages suggest the next leg could be lower.
The 50-day moving average has crossed below the 100-day. Technical analyst’s consider this a ‘bearish crossover’ or a ‘death cross’.
This is regarded as a pre-curser to lower prices.
Should the price break below the support of a rising trend line at $21.30, it may extend lower to the 24th of May low at $16.49.
Alternatively, if UNI pushes higher through $23.40, the $30.0o level becomes a possibility.
However, for today at least, the price is likely to remain largely flat.
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