UNI prices rose more than 25% and rose above $6.20. Uniswap is now consolidating gains and a near-term downside could be attractive for bulls.
- UNI started a new rally above the $5.20 and $6.00 resistance levels.
- The price is trading above $5.80 and the 100 simple moving average (4-hours).
- A breakout occurred above the main bearish channel with resistance near $5.25 on the 4-hours chart of the UNI/USD pair (data source from Kraken).
- The pair may correct lower, but the bulls may become active near the $5.60 and $5.55 levels.
UNI price regains strength
After forming a support base above $4.80, UNI began a new surge. Bulls were able to push the price of Uniswap above the $5.25 and $5.30 resistance levels, outperforming Bitcoin and Ethereum.
On the 4-hours chart of the UNI/USD pair, a breakout occurred above the main bearish channel with resistance near $5.25. The pair rose more than 25% and even rose above $6.20. A new multi-week high was made near $6.60 and the price is trending lower.
There was a move below the $6.25 level. Uniswap is currently approaching the 23.6% Fib retracement level, rising from a low of $4.83 to a high of $6.60.
UNI is still trading above $5.80 and the 100 simple moving average (4-hours). If there is a new price increase, the price may face resistance near the $6.40 level. The next major resistance is near the $6.60 level. A break above the $6.60 level could open the door to further gains in the near term.
Source: TradingView.com UNIUSD
The next major resistance could be near $6.88, above which a test of the $7.00 level is likely to be targeted. More gains could lead UNI to $7.20.
Does Uniswap support dips?
If UNI price fails to rise above $6.40 or $6.60, it could go lower. The first major support is near the $6.05 level. The next major support is near the $5.70 level.
Main support is near $5.55, or the 61.8% Fib retracement level, rising from a low of $4.83 to a high of $6.60. A break below the $5.55 support could open the door for an advance towards $5.00.
technical indicators
4-Hour MACD – The MACD for UNI/USD is losing momentum in bullish territory.
4-Hour Relative Strength Index (RSI) – The RSI for UNI/USD is well above the 50 level.
Key support levels – $6.05, $5.70 and $5.55.
Key resistance levels – $6.40, $6.60 and $7.00.