Uniswap Price Analysis: UNI Prepares For Rebound After Testing Support $25

Last Updated August 18th 2021
2 Min Read
  • Uniswap price remains in the red after failing to close the day above $30.
  • Support at $25 limits the pulldown with buyers focused on regaining the ground to $30.
  • The transaction history on-chain model suggests that recovery will be challenging, especially with the resistance at $28.4.

Uniswap broke the continuous winning streak moments after lifting slightly above $30. A barrier at $31 curtailed the uptrend, paving the way for a correction that saw UNI trim gains to $25. The correction was not unique to Uniswap as major assets like Bitcoin and Ethereum dropped, stopping short of $44,000 and $3,000, respectively.

Meanwhile, UNI is trading at $26.7, following the support at $25. Bulls seem to be focusing on regaining the lost ground. A daily close above $30 could mark the beginning of another round of gains for the decentralized finance (DeFi) token to close the gap to $40,000.

Uniswap Price Ricochets From $25 Support, But These Are The Levels To Watch

Despite the support at $25, the Moving Average Convergence Divergence (MACD) indicator suggests sellers have the upper. The bearish perspective comes after a recently flashed sell signal in the daily timeframe. As the 12-day EMA crossed below the 26-day EMA, bears assumed control. Note that the bearish outlook is currently emphasized by the MACD’s movement toward the mean line.

The 50 Simple Moving Average (SMA) reinforces support at $25. Therefore, bulls must ensure that this level is fortified; otherwise, another round of losses to $20 is not a farfetched idea.

UNI/USD Daily Chart

 UNI/USD Daily Chart 081821

Intriguingly, a golden cross formed within the daily chart as Uniswap lifted above $30. This technical pattern developed the moment the 50-day moving average crossed above the 200-day moving average. Some of the most prominent technical analysts in the industry see this pattern as one of the most definitive buy signals that could start a bull run.

At the same time, on-chain data by Santiment shows that UNI’s whales continue to stock up the retreat. For instance, the holder distribution metric shows that addresses with coins between 1 million and 10 million have increased their holdings to 339 million UNI from a 30-day low of 316 million, which is a bullish signal. Currently, the whales in this range take up 33.9% of Uniswap’s supply.

Uniswap Holder Distribution Metric

 Uniswap Holder Distribution Metric 081821

What Could Invalidate Uniswap’s Recovery Mission Above $30

According to the IOMAP on-chain model, the region between $29 and $28.2 is the most robust seller congestion zone. It hosts nearly 8,400 addresses that bought 137 million UNI. Recovery from the support at $28 may falter at this zone as investors who have been underwater try to break even.

Uniswap IOMAP Model

 Uniswap Volume Chart 081821

On the other hand, Uniswap has to deal with minor support areas. Hence, a slight increase in selling pressure could see UNI dropping toward $20.

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