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Since January 2021, the price of Uniswap has been rising. However, there has been a modest drop in bullish sentiment over the last few weeks. The coin has been in a cycle of consolidation since the latter half of February, and the market activity over the last week has been purely sideways.
Uniswap was trading at $32.3 at the time of publication, with a market capitalisation of $16.7 billion. The coin’s price has seen a modest correction of more than 3% in the last day, and the coin could face intensified bearish pressure in the coming week.
Uniswap 1-day chart
The selling price of Uniswap has come into touch with a high degree of resistance around the $36-$37 price point, and the coin has had several unsuccessful attempts to break this resistance over the last week. This has resulted in a trend turnaround for UNI, and the bears seem to be in charge of the market at the time of publishing. The next 24-hour window is important for the coin, and if the resistance is not broken, the coin will test its immediate support at $28 with strong bearish pressure and drop to the second support at $20 in the coming week.
The market’s performance over the next 48 hours will decide UNI’s pattern over the next week. Traders with short positions stand to benefit if the first support stage is broken in the coming days.
The coin’s technical indicators paint a very bearish picture. The MACD indicator has crossed below the MACD line, indicating a bearish convergence. The RSI echoes this feeling, but there is some divergence. Although the indicator has shifted away from the overbought zone, it is still very close to it.
Important levels to watch out for
Support: $28, $20
Take Profit: $20.3
Stop Loss: $35.1
In the coming week, UNI is likely to face two possibilities. If the support level of $28 is broken, the price of UNI is likely to decline dramatically, and short sellers would gain. However, there is a risk that UNI will continue to trade sideways and be limited to the narrow channel it is currently in even in the coming week.