Uniswap (UNI) – Could be preparing to unleash a fresh bull run

Uniswap (UNI) – Could be preparing to unleash a fresh bull run

Uniswap’s (UNI) rally faltered at an almost two-month high of 9.84, with the price reversing lower to seek shelter near the exponential moving averages and the middle-line of the regression channel pulled from the June 18^th bottom.

Despite the recent setback the short-term technical picture remains upbeat and safeguarded by the 50- and 100-period exponential moving averages which continue to exhibit a strong positive charge.

The momentum indicators have been indicating a constant dwindling in positive momentum, as the ROC dropped below its equilibrium level and the TSI has been falling dramatically below its signal line and appears ready to dive into negative waters.

The market action is currently taking place around the 50-period exponential moving average. While within a breathing distance the middle-line of the channel, the July 19^th intraday high at 7.75, and the 100-period exponential moving, forms together a sturdy floor which the bears need to crack to accelerate towards the lower-line of the channel and the neighboring 6.58 – 6.22 zone linking the July 9^th high and the July 26^th intraday low. Further lower, eyes will turn towards the July 11^th bottom at 5.23.

If the aforementioned floor proves strong enough for an upside reversal, the price will jump for a retest of the most recent high at 9.84. By knocking down that ceiling, the bulls will speed up to the March 1^st high of 10.83 before pursuing the late March top of 12.50.

All in all, although upside pressures are currently looking dim, Uniswap could still improve its short-term outlook in the coming sessions if the 7.75 base proves solid. Yet, a dip below the 100-period exponential moving average will pave the way for a steeper retracement.