The Uniswap price is rolling over and bullish momentum starting to wane, but as long as UNI sees a bid at $25.00 it may still have a chance to pop. The cryptocurrency market has seen mixed trade over the last week or so as Bitcoin pulls back from $50k to $48,000. Although the recent resurgence has some assets like Cardano (ADA/USD) flirting with all-time highs, and Solana (SOL/USD) which has printed a new record above $100 this morning, UNI is making hard work of it.
Despite jumping 120% in the four weeks following the July low, Unsiwap has started to chop in a horizontal range. Furthermore, the Uniswap price is running into resistance at increasingly lower levels. Right now, $29.20 is the price the bulls must hurdle for UNI to continue the accent. Furthermore, $25.00 is the price that must hold for the bulls to stay in control.
Decentralized market maker uniswap sits just outside the top 10 list of largest Cryptocurrency. Presently UNI’s $16 billion market cap ranks it as the 11th most valuable digital asset, behind 10th-placed Polkadot (DOT/USD). Furthermore, after an incredible recent performance, Terra’s LUNA coin is nipping at it’s heels, and if Uniswap is to maintain it’s current ranking it must hold the crucial support just below the market.
Turning to the daily chart we see two long-term trend lines are dictating the Uniswap price action. The first, at $14.65 is a major support level, and was the turning point for the 120% rally starting in July. However, it’s the second significant trend from the May $48.12 high, currently capping the price at $29.29, that is the immediate deciding factor for UNI. The trend line has rejected the price five times in the last two weeks and should therefore be considered a significant resistance level, and long as the trend remains resolute, Uniswap will face downside pressure. As a result of reversing from resistance, UNI has tracked lower to horizontal support at $25.00, which is so far, holding up. This is supported by the 50, and 100-day moving averages at $25.12 and $24.60, respectively.
A failure to hold this support should lead to an extension lower to the 200-day average at $22.17. And if that gives way, a drop to the long term-trend line is possible.
However, a clearance of $29.20 changes the dynamic, and in this event, the path to the all-time high has few obstacles.
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