Uniswap’s price was holding above support at $35.44, however, after the recent push, the price dropped below this level. This drop in value increased volatility in the market and was followed by a recovery effort that pushed the price right above the support line.
Currently, UNI was trading at $35.80 with a market capitalization of $20.08 billion.
Uniswap hourly chart
Source: UNIUSD on TradingView
The above chart of UNI indicated that the price of the digital asset fell under the $35.55 support. Although bearish pressure pushed the asset’s value under this level, the market always bounces back. Despite the recent downtrend, buyers boosted the price higher and gave way to a bull trend.
UNI’s value could be looking to move towards higher levels.
Reasoning
Bollinger Bands were noting a strong divergence, at the time of writing. This divergence hinted at the rise of volatility once again as the price tried to build higher. Signal line pointed at the rise of bullishness as it moved under the candlesticks marking the upward trending price.
The 50 moving average had also slipped under the price bars and was acting as immediate support.
The rise in buying pressure had been a result of the inflated prices as highlighted by the rising value of the relative strength index from the oversold zone. Currently, RSI value had moved past the equilibrium zone and remained at 56. This indicated that the buying pressure was dominant in the UNI market while the momentum was also growing for buyers.
Crucial levels
Entry-level: $36.30
Take profit: $37.83
Stop-level: $35.53
Risk to Reward: 1.97
Conclusion
The current UNI market suggested a bullish movement for the digital asset. Going forward, the price of UNI could rise to the immediate resistance at $37. While the indicators suggested a strong market, a sudden shift in volatility could change this trend.
