- UNI price warming for bullish momentum above 21SMA
- Bears in control of UNI’s short term trendline
- Bulls must protect $4.2 price level
UNI price overview
Since September, UNI price action has been on a bearish trajectory when its upside break was cut short by the bears near $5.6. Despite the signs of positivity displayed by the entire cryptocurrency market, Uniswap’s governance token continues to struggle over the last few days, with bears gaining control of its short term trend.
UNI price opened the trading day at $4.381 after closing the previous day at the same price. The highest price level reached by the Uniswap governance token at the time of writing is $4.416 before dropping to its current price at $4.289.
UNI price movements in the last 24 hours
The UNI/USD pair has been riding a bearish tide on its one-day price chart. The bears seem to be in control of the asset currently.
UNI/USD 1-hour price chart
The UNI price action has continued to drop within the narrow confines of a falling wedge pattern. Notably, this particular pattern starts shaping up when an asset has been declining in the price for a while. An asset’s price can break in either direction, but falling wedge patterns often indicate an incoming bullish breakout.
Currently, the UNI/USD pair is trading at $4.18 after experiencing massive resistance at the 50 SMA in the 1-hour chart. The 21 SMA supports the token currently. Based on the relative strength indicator, the UNI price actions appear to explore further downside towards $4.0. The bulls must do everything to protect the anchor near $4.2, which according to IntoThe Block, in and out of money, is Uniswap’s most substantial support level. More than 9,000 addresses purchased over 20 million UNI tokens at this level.
Analyst: UNI must clear $4.70 to explore further gains
According to a cryptocurrency analyst by Crypto Michael on Twitter, UNI must recover the $4.70 support level to rise further in the next days. According to Michael, UNI/USD bulls must conquer this price level to extinguish the high selling pressure being instilled by the bears.
UNI price prediction
Following the launch of Uniswap’s UNI governance token a few weeks ago, its price has been the subject of some crazy movements. The UNI price action reached the $1 price level following its release; however, it embarked on a robust bullish trajectory going as high as $8.5 before correcting.
If the bulls fail to defend their fort near $4.2, losses may extend towards the $3.5 support zone or even further down.
However, if the asset rebounds off this crucial support, UNI price may break out of the descending wedge pattern sparking a bullish momentum towards the 50 SMA. Clearing the 50 SMA is equally essential because it will instill confidence in the bullish momentum. The resistance zones near $4.65 and $4.80 are critical, and traders should keep an eye on them.
Traders are counting on the release of Uniswap version three to drive UNI tokens’ price in the short term. The upgrade is expected to provide Uniswap users with new features and functionalities identical to centralized exchange platforms.
