The bearish pressure in the market continues to dominate the altcoin market. While there were signs of a trend reversal in the past 24-hours, popular altcoins like Uniswap have seen the resurgence of the bears leading to substantial losses in the past day.
At the time of writing, UNI was trading at $30.1 after having seen a price drop of over 5 percent in the past day’s time. UNI has a market capitalization of over $15 billion making it the 10th largest cryptocurrency in the market.
Uniswap 4-hour chart
Source: UNI/USD, TradingView
UNI’s price has been on a steady decline during the past 24-hours and at the time of writing is close to testing its immediate support at $29.7. If this level is breached in the coming few hours, the coin can expect a further price drop taking it all the way down to $28.2.
In such a scenario, traders can benefit from short positions and take profit around the second support level. There is considerable resistance around the $32 price level, however, given the present market conditions, a north-bound move isn’t very likely in the short term.
Rationale
The technical indicators for UNI paint a bearish picture for the coming 12-24 hours. The MACD indicator has undergone a bearish crossover and a trend reversal isn’t likely to take place in the short term. The RSI has also fallen close to the oversold zone and signals short-term bearishness as the market continues to be dominated by sellers.
Important levels to watch out for
Entry: $29.5
Stop loss: $32.2
Take profit: $28.4
Risk/Reward ratio: 0.43
Conclusion
UNI’s price is likely to continue on the downtrend in the coming day’s time as the bearish pressure continues to mount. In such a scenario, if the immediate support fails, UNI may soon be on its way to the $28 price range and traders can benefit from short positions.
