- Uniswap price embarks on another recovery after a significant dip to $17.
- The IOMAP on-chain model emphasizes the robust barrier between $18.9 and $19.5, which is likely to hinder recovery attempts.
Uniswap is among the most battered cryptocurrencies amid the mid-week bearish wave across the market. CoinGecko shows the decentralized finance (Defi) token trading at $17.5, following a nearly 14% loss in the last 24 hours. These double-digit losses are not unique to UNI but reflect across the board.
Uniswap Price On A Downward Roll
After losing a great deal of the gains made in the first week of July, Uniswap comes to the end of the second week hunting for formidable support. A reflex recoil at $17 has seen bulls begin to tackle the overhead pressure head-on.
On the upside, short-term resistance is anticipated at $18. However, a daily close above this level will bring Uniswap closer to $20.
It is essential to foresee the possibility of a recovery holding firm in the coming sessions, especially with a golden cross pattern in the offing. This technical formation occurred when a short-term moving average crossed above a long-term moving average.
For instance, Uniswap’s chart shows the 100 Simple Moving Average (SMA) crossing above the 200 SMA. If this pattern confirms, we expect UNI to settle above $20 before attempting a significant liftoff beyond $24.
UNI/USD four-hour chart
The exact four-hour chart shines a light on a buy signal from the TD Sequential indicator. The call to sell presented itself in a red nine candlestick, implying that the bearish outlook will start to wane as bulls prepare to take control.
If the buy signal is confirmed, Uniswap will gain momentum for an uptick above $20. A break above $20 may trigger more gains as investors rush to take advantage of the potential upswing toward $24 and $28, respectively.
UNI/USD four-hour chart
What Could Invalidate Uniswap Price Recovery Beyond $20?
The In/Out of the Money Around Price (IOMAP) by IntoTheBlock shows that recovery will be an uphill; battle following a significant barrier between $18.9 and $19.5. Approximately 3,300 addresses previously bought nearly 136,000 UNI in the range. Cracking through this seller congestion zone to trade above $20 will be an uphill task and may see Uniswap settle below $20 longer than expected.
Uniswap IOMAP model
Uniswap sits on top of relatively weak support areas on the downside, driving the bearish point home. A slight push above the price may result in another downward spiral to the primary support at $14.5. Here, bulls will regroup for another recovery mission.