By Franklin Smith
The latest bullish actions had Uniswap (UNI) securing a position beyond the 20-50-200 exponential moving average, indicating a short-term buying bias. Buyers have eventually triggered multiple green candlesticks following a stretched bearish trend from $12.
The alternative token secured support at $6 after meeting selling strength. A closing beneath the pattern might expose the alt to declines in the upcoming sessions. UNI traded around $6.26 during this publication.
Uniswap 4Hr Timeframe
Uniswap’s long-term trend-line foothold has historically bolstered near-term recoveries. As a result, the latest bounce-back from the mark catalyzed a double-bottom pattern on its 4hr chart. UNI’s stretched bearishness secured support at the $3.4 – $3.7 value area.
Bulls have held this range for more than 18 months. Moreover, buyers triggered an immense recovery following declines to 18-month lows, pushing beyond the long- and near-term Exponential Moving Averages.
Meanwhile, Uniswap witnessed a bullish breakout beyond its sideways patch as it traversed an upward channel. Any possible closing beyond $6.48 might bolster the altcoin to extend prevailing patterned oscillation before breaking down.
A close beneath the 20 Exponential Moving Average and the upward channel’s bottom trend line would highlight a selling signal. That would see possible targets resting around the $5.1 – $5.5 value area.
Reasoning
The Relative Strength Index noted stable growth as it hovered near the oversold region. The indicator confirmed a bullish stance on the 4hr chart. Meanwhile, the Volume Oscillator printed a bearish divergence with UNI price as it formed lower highs within the previous four days.
It also suggested weakness by the latest bull run within the upward channel. Moreover, any bearish cross on the Moving Average Convergence Divergence would indicate easing buying strength.
Final Thought
Considering the Volume Oscillator’s bearish divergence and higher price rejections near $6.4, patterned breakdowns might halt short-term buying efforts.
The price targets would stay as mentioned above. Nevertheless, enthusiasts should consider the on-chain analysis, and broad market sentiments remain crucial to ensure a profitable move.
What are your thoughts about the prevailing crypto market condition? Feel free to leave a reply in the comment section below.