A lot of the gains Uniswap was able to register in the past month were undone as bearish pressure overwhelmed the crypto market a few days back. While many of the altcoins were quick to recover, UNI’s case wasn’t the same and since the price drop, UNI has been trading extremely range-bound.
At the time of writing, UNI was trading at $29.7 and occupied the 11th spot on CoinMarketCap’s list with a 24-hour trading volume of $893 million. The bearish pressure seems to persist in the market, as UNI saw a further 10 percent price drop in the past day’s time.
Uniswap 4-hour chart
Source: UNI/USD, TradingView
According to the 4-hour chart, UNI’s price action since 18 April has been confined within the immediate resistance at $33 and its immediate support at $28.6. The coin has seen increased sideways movement, as the bullish momentum continues to be missing in the UNI market.
If the immediate support fails in the coming 12-hours, traders can expect a further price dip to the $27 price range. This level has sustained the price during the last week of March when the market turned bearish and can be expected to do the same this time around.
Rationale
The coin’s technical indicators highlight the bearish market UNI currently finds itself in. MACD indicator has undergone a bearish crossover with the signal line maintaining its place above MACD line – a common sign of a price correction. In UNI’s case, this implies that the coin doesn’t have enough momentum to secure a recovery run.
RSI echoed a similar outlook as it now is quite close to the oversold zone.
Conclusion
Uniswap’s price has fallen during the past few days and a recovery run isn’t very likely at the moment. If the present support level fails, the coin may head toward the $27 price level and may then trade sideways in the coming few days.
