Uniswap Price Prediction: UNI at risk of 35% correction

|ByJonathan Morgan

  • Uniswap price is under threat of another significant push south.
  • Bulls will need to show convincing momentum and defense to prevent a collapse.
  • Extremely bearish conditions across the board.
Uniswap price sits atop one of its final price support zones before a significant sell-off will likely occur. Despite having recovered over 33% of its flash-crash losses, buyers appear to be abandoning Uniswap in the interim.
 

Uniswap price perilously close to a significant drop

 
Uniswap price, from an Ichimoku perspective, is overwhelmingly bearish on the daily chart. It is currently positioned for a re-entry based on the Ideal Bearish Ichimoku Breakout setup, which Uniswap now fulfills all requirements. These requirements are:
1.       The current close below the Tenkan-Sen.
2.       The current close below the Kijun-Sen.
3.       The current close below the Cloud.
4.       The Chikou Span is below the candlesticks and in open space.
a.       Open space is a condition where the Chikou Span will not intercept the bodies of any candlesticks over the next five to ten periods.
5.       Future Span A below Future Span B.
The rules for adding to an existing short when the Idea Bearish Ichimoku Breakout setup is complete vary but generally focus on crosses below the Tenkan-Sen or failed tests above the Tenkan-Sen. The latter of which is valid for Uniswap price may encourage more short-sellers to pile in.
UNI/USDT Daily Ichimoku Chart
Failure to hold the $16 price level could trigger a fast move towards the 88.6% Fibonacci retracement at $10.30. A word of warning for any bulls attempting to add between $16 and $10: the volume profile becomes thinner the further Uniswap price moves down – meaning Uniswap will accelerate its decline the lower it goes.
Bulls could quickly invalidate any near-term bearish sentiment and bias by rallying Uniswap price to a close above the Kijun-Sen and 50% Fibonacci retracement at $19.75.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

RELATED CONTENT

Loading ...

Copyright © 2024 FOREXSTREET S.L., All rights reserved.