- UNI is currently trading at $3.49 after recovering from its low of $2.47.
- The digital asset seems to be hitting a critical resistance level.
The release of UNI was one of the most successful ones, rapidly climbing towards a $700 million market capitalization and getting listed on all major exchanges like Binance, and others. The initial bull rally didn’t last long and after peaking at $8, UNI is now only trading at $3.29.
UNI is facing a critical resistance level ahead
Although UNI has managed to rebound from the low of $2.47, it is still facing an important resistance level established at $3.5 on the 12-hour chart and tested several times during the past week. Rejection from this level has the potential to take UNI down to $3 in the short-term.
UNI/USD 12-hour chart
It’s important to note that the trading volume of UNI has been declining significantly over the past few days, usually an indicator of a major move underway. The last time the volume dropped so low was around September 30 right before Uniswap suffered a 44% decline.
UNI New Addresses Chart
Additionally, the interest in the digital asset seems to be fading away, despite the recent bullish momentum. The chart with new addresses joining the UNI network provided by IntoTheBlock shows that this number has dropped from a high of 2,210 on October 7 to a current low of 1,360.
UNI/USD 4-hour chart
The Bollinger Bands on the 4-hour chart are extremely tight, indicative of a major price move coming up. The positive note for the bulls here is the defense of the 50-SMA, turning the moving average into a support level. A breakout above the resistance level at $3.5 on the 12-hour chart and the upper Bollinger Band can push UNI towards the 100-SMA at $3.77 and eventually the psychological level at $4.
UNI IOMAP Chart
The In/Out of the Money Around Price chart by IntoTheBlock shows something quite similar. The range between $3.59 and $3.69 poses the highest threat for the bulls with 24.5 million in volume. However, after this area, the next resistance point is located all the way up at $3.9-4.
Crucial levels to watch out for
After a massive start, UNI started to decline and experienced a massive correction period. The digital asset has rebounded from the low at $2.47 but is facing steep resistance ahead. The rejection from a crucial resistance level at $3.5 can push Uniswap towards $3.
On the other hand, bulls can continue with the uptrend if they can manage to push the price of UNI above the resistance level at $3.5 and the upper Bollinger Band on the 4-hour chart. A bullish breakout above both levels will make the price rise towards $3.77 and potentially $4.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.