The cryptocurrency market continued to struggle for an upward break. Popular DeFi token, Uniswap [UNI] also faced bearish pressure along with several top coins. Currently, the lower levels have continued to attract significant buying activity from the traders.
Owing to the market fall this week, the tenth-largest crypto-asset by market cap, UNI found itself inching closer to an important support level. It will be now interesting to see if the incoming volatility in the market manages to invalidate the bearish impetus.
Uniswap [UNI] noted a minor uptick of almost 1% over the past 24-hours and recorded a trading volume of $615 million. It was currently priced at $23.51 while holding a market cap of $13.55 billion, at the time of writing.
Uniswap [UNI] Daily Price Chart:
The recent market as displayed in the above Uniswap’s daily chart was indicative that bulls are far away. The placement of moving averages was also a cause of worry. Firstly, both the DMAs were hovering above the UNI price candles thereby resisting an upward price action. In addition, the 50 DMA [Pink] and the 100 DMA [blue] now appeared to be heading for a bearish crossover in the coming days which could trigger the price to spiral down even more.
UNI’s volume, however, remained moderate which could provide the coin with necessary support in case the price goes downhill.
The dotted markers of Parabolic SAR below the UNI price candles gave some hope of bullish revival in the coin market that is at a crucial stage. The Chaikin Money Flow [CMF] also surged notably demonstrating a strong case of inflow of capital in the UNI market which could aid in price appreciation.
The RSI, however, depicted a grim picture of increasing sell pressure in the market and falling buying sentiment.
If the Uniswap bulls thrust the price above the current level, the momentum could pick up which could suggest a move towards the resistance levels of $34.26 and $43.17 after breaching the DMAs.
Conversely, if the price turns down yet again, it will further validate that market participants are offloading their tokens on rallies. In this case, the support levels of $16.81 could come into play, But if Uniswap fails to defend level, losses could trigger a fall to $7.48, a level last seen in the first week of the year.