- Uniswap bulls are back into action after being battered to $16.5.
- Recovery is gradual but steady as the gap to $30 shrinks.
- The transaction history model highlights intense resistance ahead of UNI.
Uniswap came down crashing from the all-time high, unable to secure support at $36 and $30, respectively. The freefall occurred amid the massacre in the cryptocurrency market believed to have been triggered by Bitcoin’s selloff to $35,000. UNI dropped like dead weight in the air, extending the down leg to $16.
Following the colossal downswing, Uniswap recovered, scaling the levels above $20 and $25. At the time of writing, UNI exchanges hands at 26 amid a renewed uptrend gaining ground toward $30.
Uniswap eyes liftoff beyond $30 as technical levels strength
The flash drop to $16 left Uniswap in a technical quagmire. However, bulls seem to be making their way to solid grounds, as speculation for recovery builds momentum. Meanwhile, $25 must hold support to ensure that bulls only focus on the recovery mission to $30.
Supporting the uptrend is the Relative Strength Index (RSI) on the four-hour chart. This indicator follows the trend of an asset and measures its strength. The RSI also identifies overbought and oversold conditions and works best in trending markets. For example, Uniswap dipped into oversold conditions, but the ongoing recovery is bound to gain momentum as the RSI lifts toward the midline.
RSI/USD four-hour chart
The nascent uptrend has been reinforced by the TD Sequential Indicator buy signal on the four-hour chart. A red nine candlestick suggests that selling pressure is diminishing, allowing bulls to get back into action and champion a recovery. If the buy signal is validated, Uniswap will recoil to levels above $30, setting the pace for gains back to the record high of $44.
UNI/USD four-hour chart
Uniswap bearish outlook
The In/Out of the Money Around Price (IOMAP) model by IntoTheBlock (ITB) shows that an immense resistance awaits Uniswap toward $30. This region runs from $28.1 to $28.9, whereby around 6,400 addresses previously scooped up approximately 151 million UNI. It will be challenging to break above this zone. Hence delays in recovery should be anticipated.
Uniswap IOMAP chart
On the downside, the absence of a substantial support area means Uniswap is not out of the woods yet. ITB’s model directs our attention to the subtle support area between $25 and $25.75. Here, roughly 4,600 addresses previously purchased 4.22 million UNI. Defending the support at $25 remains crucial to sustaining the uptrend in the coming sessions.