Uniswap (UNI) recently made an attempt to break above its descending channel but faced rejection by press time. This situation has left sentiment surrounding the token eerily negative for the past two months, prompting traders to question where buying opportunities lie in the coming weeks.
One key level is at the 50-day moving average (MA) of $6.18. If UNI can hold its ground above this support, it could be a sign that the token is ready to move higher again and re-enter the uptrend.
Another target traders should look out for is the 0.786 Fibonacci retracement level at $6.41. This Fibonacci level could provide a safe buying opportunity for investors looking to enter the UNI market.
In addition, traders should also keep an eye on the 20-day MA of $5.93 as it is likely to act as a strong support level in times of heavy selling pressure. If this price point can hold, UNI could be ready for a move higher.
Overall, it is clear that any buying opportunities should take into account the sentiment surrounding UNI right now and the key support levels mentioned above. If these key price points can hold, UNI could make a strong recovery in the coming weeks.
UNI technical outlook?
The technical outlook for UNI is cautiously positive. The token appears to be forming a base around the 50-day MA, and if it can hold this level in the coming days, it could signal that the token is ready to move higher once again.
In addition, UNI’s 14-day Relative Strength Index (RSI) is also slowly climbing. This could be a sign that the token is preparing for a strong rally, as an RSI above 50 indicates that buyers are in control of the market.
On the downside, UNI faces strong resistance at its 0.618 Fibonacci retracement level at $7.43 and also at its descending channel resistance of $7.56. If the token can break past these levels, it could signal that a strong rally is ahead for UNI.
Conclusion
In conclusion, UNI appears to be forming a base around the 50-day MA and could be ready for a strong recovery if this level can hold. In addition, traders should watch out for buying opportunities near the 0.786 Fibonacci retracement level of $6.41 and the 20-day MA of $5.93.
Finally, UNI’s 14-day RSI is inching higher, suggesting that the token could be ready for a strong rally if it can break past its 0.618 Fibonacci retracement level and the descending channel resistance of $7.56.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a licensed financial advisor before making any financial decisions.
