UNI price went into the red and fell below the $10.00 support line. Uniswap is showing many bearish signs and a recovery may face a hurdle near $10.00.
- UNI began a new decline below the $10.00 support zone.
- The price is trading below $9.50 and the 100 simple moving average (4-hours).
- On the 4-hours chart of the UNI/USD pair, there is a major bearish trendline forming with resistance near $10.25 (data source from Kraken).
- The pair may recover, but the upside may be limited above $10.00.
UNI prices take a hit
After the SEC news, UNI began a big decline. Selling pressure on Uniswap increased below the $12.00 pivot level. The price fell more than 15% and was trading below the $10.00 support line. This has also increased pressure on Bitcoin and Ethereum.
There was also a decline below the $9.20 level. The price traded as low as $8.72 and is still showing many signs of weakness. There is also a major bearish trendline forming with resistance near $10.25 on the 4-hours chart of the UNI/USD pair.
UNI price is currently trading below $10.00 and the 100 simple moving average (4-hours). Immediate upside resistance is near the $9.45 level. This is near the 23.6% Fib retracement level of the downward move from the $11.79 swing high to the $8.72 low.
The next major resistance is near the $10.25 level or the trend line. This is consistent with the 50% Fib retracement level of the downward move from the $11.79 swing high to the $8.72 low.
Source: TradingView.com UNIUSD
A break above the $10.25 level could open the door to further gains in the near term. The next major resistance could be near $11.80, above which a test of the $12.00 level is likely to be targeted. More gains could lead UNI to $13.50.
Will there be more losses on Uniswap?
If the UNI price fails to rise above $9.45 or $9.50, it may continue to fall. The first major support is near the $8.70 level.
The next major support is near the $8.50 level. A break below the $8.50 support could open the door for an advance towards $7.65.
technical indicators
4-Hour MACD – The MACD for UNI/USD is gaining momentum in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for UNI/USD is below the 25 level.
Key support levels – $8.70, $8.50, $7.65.
Key resistance levels – $9.45, $10.00, $10.25.
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