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Uniswap Price Analysis: 28 March

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Source: Pixabay

For Uniswap, lower timeframes showed a shift in momentum in favor of the bulls. This could see UNI climb higher and reach $29.45, and possibly even test resistance at $29.56. The reaction of the price at its next resistance level will be important in the short-term, and climbing above this level would make recovery toward $32 more likely in the coming days. Rejection at $29.56 would see UNI drop back toward $26.

Uniswap 1-hour chart

Uniswap Price Analysis: 28 March

Source: UNI/USDT on TradingView

On the hourly chart, UNI formed a descending triangle and broke out upward. This move was not on heavy trading volume, marking it as slightly suspicious. The target of $29.45 was presented to UNI bulls following the breakout, with a level of resistance at $29.56 as well.

There was a lack of buyers behind UNI from its bounce from $26.1 to $28.5. The $28.4-$28.8 is a region of supply as well, based on historical trading activity in this zone. A climb above $29.5 would be necessary for UNI to present buying opportunities, while a revisit to $27.8 could also see buyers step in.

Reasoning

RSI climbed above neutral 50 and was at 55 to show a slight leaning to the bullish side, but this wasn’t a sign of bullish strength yet. OBV continued to trend downward even as the price recovered from the $26.1 lows.

Defending the $26 level in the past few days and effecting a bounce was a sign of waning bearish pressure in the short-term. The triangle pattern set a technical target of $29.45; however, there was no evidence across multiple timeframes that supported a move past the $29.56 resistance level.

Conclusion

Longer timeframes showed that although bearish sentiment was waning, buying pressure was lacking as well. Taken together, a rejection at $29.5 and a revisit to $27.8 could be seen over the next few hours.

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Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.