Uniswap has been showing tough trading conditions for the past 24 hours. The coin has consolidated and recorded minor losses over the last day. While Uniswap performed well last week, posting more than 30% gains, the bulls seem to be taking a break lately.
UNI recently broke through the $6.00 mark, and it could now move closer to the $8.00 price cap. Purchasing power decreased slightly, but there were still more buyers than sellers on the market. Bitcoin’s price action has helped many altcoins rise, but continued support from buyers is still critical.
Judging by the technical indicators, it seems that UNI may fluctuate in the same price zone, at least during the upcoming trading sessions. After the rally, the possibility of a pullback cannot be ruled out. Currently, UNI has not seen a pullback, but consistent consolidation could push the coin to the nearest support level.
If it manages to overcome its immediate resistance, UNI has a chance to go beyond the $8 price mark.
Uniswap Price Analysis: 4-Hour Chart
At press time, UNI was trading at $7.41 and the coin was still bullish on the chart. The current consolidation range was $7.33 to $7.49 respectively. A small push from buyers could help Uniswap break the $7.57 resistance mark.
If that happens, reaching $8.00 will be easy and there may be a chance that UNI will trade above $8.00. On the other hand, the local support for the coin was at $7.08 and then at $6.47. A break below $6.47 would push Uniswap to $5.38. UNI trading volume declined slightly, indicating a slight decrease in buying pressure.
UNI has been seeing growing purchasing power on the chart since the coin has risen. There is a slight decline in the number of buyers, even if buyers still control the market. The Relative Strength Index was above the half-line, which meant that buying pressure exceeded selling pressure.
The price of UNI was also above the 20-SMA line, signaling that buyers were driving price momentum in the market. UNI was also above the 50-SMA and 200-SMA which meant that the coin was trading with bullish momentum.
| Bitcoin Barrels Near $24K as Miners Transfer $300M from Wallet
UNI was positive in terms of purchasing power, but some indicators indicated otherwise. Chaikin’s cash flow determines the capital inflow and outflow of an asset. Chaikin’s cash flow was below the half-line, indicating lower capital inflows. Convergence-divergence of moving averages reflect price momentum and price trend change.
The MACD underwent a bearish crossover and red histograms were visible below the midline. This indication is associated with a change in the current price direction during the upcoming trading sessions, as well as a sell signal. If Uniswap is to remain in the bullish zone, buyers must be present along with support from the broader market.
| Bitcoin Dominance Falls as Ethereum Takes More Space
Featured image from Forbes India, chart from TradingView.com
Credit : www.newsbtc.com