Uniswap Rebounds above $14 Support as Buyers Resume Upside Momentum

The price of Uniswap (UNI) has recovered from its downtrend. Buyers have been defending $14 support ahead of the upside move for over two weeks.

Bulls have broken above the 21-day moving average, but the price is approaching the 50-day moving average. If the buyers break the moving average of the 50-day line, the upward momentum could resume.

The upside momentum is likely to accelerate if the price reaches the previous highs. UNI will come out of the downward correction if the current upward momentum continues. The cryptocurrency will reach the previous high of $26. The bullish scenario will become moot if the price fails to break above the two moving averages or $22. The market will be forced to rangebound between the moving averages. Meanwhile, UNI/USD has recovered from the recent rejection and reached a high of $17 at press time. 

Uniswap indicator reading

The cryptocurrency has risen to level 51 on the Relative Strength Index for period 14. This is due to the recent uptrend. The RSI indicates that there is a balance between supply and demand. UNI is above the 80% area of the daily stochastic. This indicates that the market has reached the overbought area. The current uptrend could be rejected due to the overbought condition of the market.

Technical indicators:  

Major Resistance Levels – $55.00 and $57.00

Major Support Levels – $30.00 and $28.00

What is the next direction for Uniswap?

UNI/USD has recovered from the downtrend while the altcoin is resuming its uptrend. Currently, the market is moving back to support above the 21-day moving average line for a potential upside move. Meanwhile, the downtrend from December 23 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that UNI will rise but fall back to the 1.272 Fibonacci extension level, or $17.95.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.

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