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Decline after retest could send UNI price down 20%

Published 8 hours ago

Reacting to last week’s sell-off, Uniswap (UNI) price broke the $4.5 range support on June 11th. The breakdown dropped to 24.8% and immediately returned to retest the broken resistance. This retest opportunity may welcome further shorting in the market and encourage further decline.

Core items:

  • UNI chart shows buying pressure near $3.65 level
  • The 20-day EMA provides constant resistance against coin prices
  • The 24-hour trading volume of the Uniswap token is $654.4 million, which is a gain of 52.6%.

UNI/USDT chartSource-trading view

Amid the April crypto crash, the UNI/USDT pair broke the March floor support at $3.75. The decline after the retest depreciated the altcoin by 54% to form a lower low of $3.38. However, the daily candle close above the $4.55 level signifies lesser demand pressures.

This new support ($4.46) halted the ongoing sell-off for almost five weeks, leading to a minor consolidation between $6 and $4.55. However, last week the crypto market was hit by another wave of selling pressure and pierced the $4.55 support.

Furthermore, the breakdown rally retested the $3.38 level, but high demand pressure immediately flipped the price. Furthermore, a retest of the broken $4.55 level flipped resistance with a sharp rise in volume activity, suggesting weakness in the bearish momentum.

However, if general market sentiment holds up, UNI sellers would drag the price down 20% to the psychological $33 mark.

Conversely, a failed attempt by sellers to close a candle below $3.38 would increase the likelihood of a reversal.

Technical indicator

Since April, the fast-moving 20-day EMA has provided steady resistance against UNI prices, helping sellers sustain this downtrend. Therefore, a breakout of this dynamic resistance would be the first sign of recovery.

However, the daily slope of the RSI returned from the neutral level and fell below the 20-SMA, suggesting that the sellers are holding trend control.

  • Resistance levels – $7.5, $9.8
  • Support levels are $6.63 and $5

For the last 5 years I have worked in journalism. I follow the blockchain & cryptocurrency for the last 3 years. I’ve written on a variety of different subjects including fashion, beauty, entertainment and finance. Contact me at brian(at)coingape.com

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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