A venture capital arm of Uniswap Labs was launched on April 12. There are mixed signs in the price action for Uniswap.
UNI has been falling since reaching an all-time high price of $48.12 on May 5. The downward movement has so far led to a low of $7.51 on Feb 24. The ensuing bounce validated the $8.30 area as support.
During the day of the launch on Sept. 18, 2020, this level acted as a resistance. After the bounce, the area is likely to act as support. The downward movement might have come to an end.
Mixed indicator readings
On the bullish side, both the RSI and MACD have created bullish divergences. The RSI and MACD are both falling on the bearish side. The former is negative and the other is below 50. These are the signs of a bearish trend.
UNI wave count analysis
When measuring from the all-time high price, the most likely long-term count shows that UNI is stuck in a corrective structure.
Cryptocurrency trader @JacobEmmerton stated that UNI could be completing a short-term running flat correction.
UNI is in a flat correction, according to the most bullish possibility.
However, it is also possible that the price has already completed an A-B-C correction (red) and is now heading downwards. This would fit better with the potential long-term count outlined prior.
The direction of the trend can’t be determined with any confidence because of the mixed readings from the technical indicators.
Featured photo source unsplash.com
