- Uniswap price up against an extensive collection of resistance levels.
- Downside pressure is not expected, but movement may be muted for a few days.
- Buyers needed to trigger more momentum.
Uniswap price has performed marginally well since January 9, moving up more than 11% in the past three days. UNI was a clear leader and outperformer at the time when the rest of the market tanked. Currently, however, its performance is now lagging behind the broader market.
Uniswap price awaits more buying participation
Uniswap price is lagging the broader market now for several reasons. Those reasons are the Tenkan-Sen, Kijun-Sen, and Senkou Span A. Those three Ichimoku levels all sit above UNI at $17.25. Breaking out above all three levels should be challenging and should result in a slight pause before a real test occurs. However, the move above those three Ichimoku levels will be extremely bullish on the eventual breakout.
The critical zone that Uniswap price is targeting is the Volume Point of Control and the 38.2% Fibonacci retracement at $25. The level at $25 is the final resistance zone ahead before Uniswap can start positioning itself for an extended bull run that would hit new all-time highs.
The Relative Strength Index (RSI) remains in bear market conditions but could easily convert into a bull market if Uniswap price moved high enough to position the RSI at or above 70. Likewise, the Composite Index recently crossed above its fast moving average – if it can move above the slow moving average as well, then that is a trigger for a sustained bull move – likely the one needed to break and hold above the $17.25 resistance cluster.
UNI/USDT Daily Ichimoku Chart
Downside risks are not likely, but they do remain a possibility. Therefore, traders will want to pay special attention to any daily or weekly close that would put Uniswap price below the most recent lowest close of $14.17. If that occurs, then a move towards the 61.8% Fibonacci retracement at $10 is highly likely.
