Uniswap price prediction: UNI faces resistance after a 45% upswing
- Uniswap is contesting the $30 level after gaining over 45% in the past four days.
- UNI is facing a massive sell-wall near the contested level.
- The cryptocurrency will remain bullish only if it posts a daily candle above $30.
Uniswap has surged slightly over 45% in the past 4 days as it left the descending triangle formation. However, its move up is now in question as the cryptocurrency faces a sell-wall. What will happen next, and should you consider investing in UNI now?
Fundamental analysis: UNI pushes up on strong fundamentals
Uniswap has, despite the entire crypto market being in the red, managed to gain as much as 20% on the day. Today’s move up was a continuation of a 4-day price increase that increased the value of UNI by over 45%. However, the cryptocurrency has encountered a sell-wall near the $29.83 level.
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Uniswap’s fundamentals are booming at the moment, as its total volume (and importance as the largest DEX) is increasing exponentially. This positive sentiment may be the reason for UNI’s strong current position in the overall crypto market.
UNI posted week-over-week gains of 11.06%, outperforming both BTC‘s week-over-week loss of 3.42% and ETH‘s 3.07% loss. Uniswap is currently the 12th-largest cryptocurrency by market cap, boasting a value of $8.72 billion.
At the time of writing, UNI is trading for $245, which represents a price increase of 54.93% when compared to the previous month’s value.
UNI/USD technical analysis: UNI poised to reach a new all-time high if it posts a daily candle above $30
Uniswap has, after nine days of forming a descending triangle formation, managed to break above it and push its price first to the area around $25, and now to the area near $30. However, the price surge was seemingly stopped by the 78.6% Fib retracement level of $29.83, which may prove to be a tougher opponent than it first seemed.
While a scenario where UNI posts a daily candle above the $30 mark would be an amazing scenario, it’s important to look at the downside as well. UNI has extremely strong support levels right below it, namely the 61.8% Fib retracement level, the 50% Fib retracement level, and the ascending 21-day EMA.
UNI’s RSI on the daily time-frame has has slowly started moving towards the overbought territory. Its current value is sitting at 66.29.
Zooming in to the hourly time-frame, we can see that UNI has established its presence and respected every single resistance level, but ultimately passed through it. However, the 78.6% Fib retracement level of $29.83 might be a bit stronger, as the data shows that the area around the $30 mark is filled with sellers.
Uniswap will need to post a daily candle above the 78.6% Fib retracement level in order to be considered completely bullish. If it fails to do so, we may expect a pullback to its immediate support levels (21-hour EMA, 61.8% Fib retracement level, etc.).