https://ift.tt/3mRPyf9 to break above $20 next

TL;DR Breakdown

• Uniswap price analysis is bearish today.
• UNI/USD failed to push higher.
• Uniswap is currently trading at $18.42.

Following a significant decline from $26.50, Uniswap is presently trading at $18.42, down 2.8 percent as of this writing. Our assessment is bearish because we anticipate the current consolidation to conclude with a break lower. Since UNI/USD has been unable to regain momentum, we expect the $16.75 support to be finally broken. It is possible for a bounce at this point, but we expect it to be short-lived. UNI/USD could challenge resistance pegged at $18.75 before continuing lower in the interim.

The moving average convergence divergence indicators on the daily and 4-hour charts are negatively aligned and bearish. Furthermore, both of them have turned south, which indicates that selling pressure is about to increase. Similarly, the relative strength index on the daily as well as the four-hour chart is below 50. This shows that sellers still have a grip over price action, resulting in further declines before any gains materialize.

The stochastic oscillator on all relevant timeframes has crossed southward after turning north, briefly proving itself to be indecisive currently. This counts towards our expectations of lower lows being formed.

After the significant high of $26.50, UNI/USD dropped to $15.40. After that point, a bounce was expected, but again, sellers rejected higher prices for now as price action is still trading below all moving averages on both timeframes. The bulls will have to break above the 21 period MA on the daily chart, which is currently pegged at $19, before being able to rally further northwards. Otherwise, due to clear bearish signs on all timeframes, expect UNI/USD to drop towards lows of $16 or even lower during this week’s trade sessions.

UNI/USD 4-hour chart: UNI prepares to break lower?

On the 4-hour chart, we can see that the Uniswap price has failed to reach further gains, suggesting that it may soon break below $16.75 current support.

The price of Uniswap advanced strongly last week. On December 27th, a new major swing high was set at $20, following two strong upswings.

UNI/USD pair pumped after having a healthy retracement just below $18. On Tuesday, bulls were set to push the market even higher, but there was a strong reversal and a breakdown of the previous low.

The $16.75 low halted the fall, for now, bringing the Uniswap price to set another lower high at $18.5. Since Friday, UNI/USD has been consolidating above the $16.75 support, with bears eager to test more downside.

Uniswap Price Analysis: Conclusion 

After failing to gain more ground today, we expect the market to break down later today. The $16.75 support is expected to be broken later today, opening up the path for a lot more losses next week.

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