Uniswap (UNI) – Bulls aiming to stretch the rebound after snapping the descending trendline

Uniswap (UNI) – Bulls aiming to stretch the rebound after snapping the descending trendline

Posted on Tuesday, May 31 2022 at 9:58 pm GMT+0000

Uniswap’s (UNI) bulls snapped the descending trendline stretched from the March 31st peak, after the impressive rebound on Monday, that sent the price marginally beneath the last week’s high.

After a long period of declines, the 10-day exponential moving average is now ticking higher, conveying the rising bullish pressures. Additionally, the oscillators are reflecting the recent improvement in momentum, as the KST is rising above its moving average, and the MACD continues to gain ground within the negative area beyond its trigger line, both promoting further bullish developments.

The market action is currently taking place around the crucial resistance of 5.97, reached on May 23, and a clear victory above it will complete a bullish trend reversal pattern. In that case, the price will likely slice through the 40-day exponential moving average at 6.34 and jump to challenge the 161.8% Fibonacci extension level of the last down-leg at 6.83. Even higher, the coin could sail towards the region encapsulating the 261.8% Fibonacci extension level and the March 14th inside swing low at 8.11 -8.22.

Otherwise, the 10-day exponential moving average seen around the 5.34 level could act as a preliminary safety net for buyers. Sliding lower all the eyes will turn to the May 28 bottom at 4.58 and the adjacent descending trendline.  If this floor cracks, the next stop could be around the May 12th low of 3.57, and a violation here would bring the downtrend from March 31st peak back into play.

All in all, the short-term risk for Uniswap seems to be leaning on the positive side, but the bulls will need to breach the 5.97 bar to confirm that.