Uniswap’s [UNI] attempt to reach the May highs was cut short by the subsequent sell-off. While the global market cap dropped below $2 trillion, most crypto-assets broke psychological levels. UNI, for one, tested the $25.3 support level as it fell from a high of more than $33. The price is currently dominated by bears who are trapping upward momentum to overcome the downtrend Bitcoin that has been at play since the beginning of September.
Over the past 24-hours., Uniswap [UNI] noted a minor decline of 1.78% which pushed the asset to $23.18. The DeFi token held a market cap of $14.23 billion and a 24-hour trading volume of $655 million, at the time of writing.
Uniswap [UNI] Daily Price Chart:
The volatility in the UNI market took a hit. The moving averages also depicted a less promising outlook as both 50 [Pink] and the 200 DMA [Yellow] moved over the price candles. However, UNI managed to thwart the attempt of 100 DMA [Blue] to climb above the price.
Additionally, the formation of a descending parallel channel on the daily revived hopes for a bullish reversal in the near term. The trading volume, on the other hand, has spiked which could aid in the growth of a potential uptrend.
The Klinger Oscillator [KO] managed to steer away from a bearish crossover depicting a potential change in trend. The Chaikin Money Flow [CMF] also held its position on top of the zero-line after a period of increased outflow from the coin market. The daily Relative Strength Index [RSI] attempted to make headway above the 50-median line even as sellers continued to pressure the traders to offload the asset.
In case of a bullish breakout following the completion of the descending channel formation, Uniwap would have to beach the moving averages near $25-$26 to target the nearest resistance level of $30. Other resistances stood at $40.5 and $43.3 respectively. The support areas, on the other hand, were found to be at $21.4 and $31.6.