- Uniswap price has entered a minor correction toward $18 after hitting resistance at $19.30.
- The technical setup is still very much in favor of Uniswap going higher.
- UNI enjoys the current risk-on environment, and fundamentals are still in benefit of it going higher.
Uniswap price hit $21 last night before dipping lower toward $18. All the technical elements and fundamental indicators are still in favor of UNI going upwards.
UNI ready for the pop higher toward $21
Uniswap price hit an essential barrier at $19.30 last night. UNI had last seen this level on June 21 and has not been tested since. The rejection at $19.30 and the downturn looks standard, with short-term profit-taking and Uniswap price now looking for support where buyers will come in again.
From a technical point of view, UNI has respected the blue upward trend line three times. A bounce off that trend line would make sense for buyers to come in, and Uniswap price would head higher toward $19.30 again. The level UNI is looking for is around $18, which will act as a psychological level and at the 23.6% Fibonacci level. So there are three technical reasons to go long UNI.
Once the bounce off that blue trend line happens, UNI can go to $19.30 again for the retest. That would be the third test and is highly likely to break to the upside. Even if it does not break to the upside, we would then fall into a triangle technical setup, which would squeeze UNI higher. It is only a matter of time before UNI will reclaim $19.30.
The RSI favors the long UNI as well, with the RSI around 55, so nowhere near overbought or oversold. With the general risk-on sentiment from the past few days, momentum is certainly in favor of Uniswap price trending higher.
The profit target is $21.05, which has proven its importance on June 13 with a triple bottom and June 21 with support on an initial test to the downside by Uniswap price. Only after the clear break lower did $21.05 become resistance with two rejections to the downside, and UNI has not made it back since.
The level looks more than ready for a retest.
UNI/USD 4 hour chart
However, sentiment this morning in the markets is lackluster. Markets are not sure which way to look for direction, and the risk-on tone might not be there today to support Uniswap price. So once the blue trend line and the level at $18 would break to the downside, UNI will dip lower toward $17 and look for a bounce off the orange descending trend line. Should even the orange trend line and $17 not hold, then be ready for a retest of $15.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP eyes $0.6640 as Ripple CEO tips Trump to fire Gensler on first day in office
Ripple's XRP is up over 5% on Wednesday and could extend its rally to $0.6640 as the Securities & Exchange Commission may not file its appeal brief against the company due to Donald Trump's presidential election victory.
What's next for Bitcoin and Crypto industry following Trump's victory in US Presidential election
The 2024 US presidential election ended with pro-crypto advocates leading the House of Representatives, the Senate, and Donald Trump as the president-elect. The results stirred massive celebration across the crypto industry, with Bitcoin and the crypto market rallying following Trump's win.
Crypto Today: All Bitcoin holders in profit, TRON partners with Chainlink, DOGE miners in $145M buying spree
Bitcoin price reached a new all-time high of $75,120 on November 6 as markets reacted to Donald Trump’s victory in the 2024 US presidential election. The global cryptocurrency sector valuation grew by $190 billion within the daily time frame as bullish momentum spilled over into the altcoin market.
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory
Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.