UniSwap Technical Analysis: UNI on the cusp of a major reversal

  • UniSwap rally from the primary support at $2.5 rejected at $3.5.
  • The 50 SMA in the 4-hour range limits upward price action in conjunction with the descending parallel channel resistance.

UniSwap has lost over 60% of its value since its all-time high of $8.6. The token received immense support after the launch in September but failed to sustain the uptrend, mainly due to decreasing liquidity. Nonetheless, the extended breakdown recently approached a bottom around $2.5, as reported. A reversal ensued from this level, with the price making a remarkable upswing. At the time of writing, UNI is trading at $3.24, following a rejection at $3.5.

UniSwap resumes the downtrend

Some people might argue that UNI's downtrend never hit bottom because the token is still trading within a descending parallel channel. However, it is essential to consider a 16% surge over the last 24 hours. The reversal from the channel support broke above the middle boundary before hitting pause at the upper trendline. UNI/USD was also rejected by the 50 Simple Moving Average (SMA) in the 4-hour timeframe.

The Relative Strength Index (RSI) brings to light a developing bearish momentum following the rejection at $3.50. To avert the potential losses, buyers must pull the price above the channel's upper boundary resistance as well as the 50 SMA.

UNI/USD 4-hour chart

UNI/USD price chart

IntoTheBlock's IOMAP model reveals intensifying selling pressure towards $3.5. The most significant hurdle runs from $3.4 to $3.5. Previously, nearly 22,400 addresses bought roughly 15.4 million UNI in this range. Although the short term resistance at $3.3 might be brought down, most buying pressure will be absorbed, sabotaging the bulls' efforts.

UniSwap IOMAP chart


On the downside, the lack of a robust support area suggests that a reversal could erase most of the progress made in the last 24 hours. Meanwhile, some of the selling pressure could be absorbed in the range between $3.01 and $3.09. Here, 116 addresses previously bought roughly 8.3 million UNI.

The "Daily New Addresses" metric shows a slight increase in the number of new addresses joining the network. A downtrend recorded from the beginning of October bottomed out at roughly 2,100 addresses, giving way for a spike to approximately 3,300 addresses on October 8. The new addresses' continued growth is a bullish signal for the network and UniSwap's value.

UNI new addresses chart

UNI/USD new addresses

Looking at the other side of the picture

It is worth mentioning UNI has drawn investors' attention following the bounce from $2.5. If the token uptake rises based on the increasing number of new addresses joining the network, then the uptrend could receive a fresh boost. Price action above the descending parallel channel and the 50 SMA will most likely pave the way for gains beyond $4, invalidating the expected reversal.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ripple Price Prediction: XRP ready to make a comeback as bulls target $0.7

XRP, like the rest of the market, had a significant crash from its peak of $0.78 down to $0.456. The digital asset is currently trying to bounce back up, trading around $0.537, awaiting a clear breakout or breakdown from an ascending triangle on the 30-minute chart.

More Ripple News

Facebook plans to launch a limited version of its cryptocurrency Libra in 2021

The social media giant Facebook may launch its contradictory digital coin Libra as early as in January 2021, the Financial Times reports, citing knowledgeable sources.

More Libra News

Bitcoin show signs of a dead cat bounce while investors hope for prompt recovery

Bitcoin is hovering around $17,000 after a heart-breaking sell-off to $16,200 on Thursday. However, the industry experts warn that the downside correction has just started. 

More Bitcoin News

German finance minister calls for quick decisions on ECB's digital currency

Germany's finance minister, Olaf Scholz, said that Europeans should work very hard to come up with a solution for digital payments, as there is a massive demand for digital money from consumers and businesses.

More Cryptocurrencies News


Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast