Uniswap Price Analysis: Post-Retest Fall Could Slump UNI Price By 20%

Responding to last week’s sell-off, the Uniswap (UNI) price pierced through the range support of $4.5 on June 11th. The breakdown fell to 24.8% and reverted immediately to retest the breached resistance. This retest opportunity may welcome more short-selling in the market and encourage further downfall.

Key points:

• The UNI chart shows buying pressure near the $3.65 mark
• The 20-day EMA line provides constant resistance to coin prices
• The 24-hour trading volume in the Uniswap token is $654.4 Million, indicating a 52.6% gain.

Source-Tradingview

Amid the April crypto crash, the UNI/USDT pair breached the March bottom support of $3.75. The post-retest fall depreciated the altcoin by 54% and formed a lower low of $3.38. However, the daily candle-closing above the $4.55 mark represents lower-level demand pressure.

This new support ($4.46) stalled the ongoing sell-off for nearly five weeks, resulting in a minor consolidation between the $6 and $4.55. However, last week the crypto market was hit by another wave of selling pressure and pierced the $4.55 support.

Furthermore, the breakdown rally retested the $3.38 mark, but the high demand pressure reverted the price immediately. Furthermore, a retest to the breached $4.55 flipped resistance with significant pump in volume activity, suggesting weakness in bearish momentum.

However, if broader market sentiment persists, the UNI sellers would pull the price 20% lower to the $33 psychological mark.

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Conversely, a failed attempt from sellers to give a candle closing below $3.38 would increase the reversal chance.

Technical indicator

Since April, the fast-moving 20-day EMA has offered constant resistance to UNI prices assisting sellers in maintaining this downtrend. Therefore, a breakout from this dynamics resistance would be the first sign of a recovery.

However, the daily-RSI slope reverted from the neutral level and nosedived below the 20-SMA, indicating the sellers hold trend control.

• Resistance levels- $7.5, $9.8
• Support levels are $6.63 and $5