- Uniswap currently retests the three-day demand region, stretching between $7.31 and $9.69.
- A swift recovery might push the alt to $10.31 before revealing directional intensions.
- Breaching this barrier might lead to a 25% plummet to $5.61.
Uniswap (UNI) and most alternative coins saw massive plunges as Bitcoin endured declines. For now, UNI tags a critical support region that prevents the token from further drops. Bulls need to struggle to ensure this level.
UNI Contemplates Directional Trend
Uniswap price lost 26% in almost six days following the failure to rise past its monthly open of around $11.77. However, the downward trends allowed Uniswap to test the three-day demand territory, extending between $7.31 and $9.69.
This barrier remains critical in avoiding more drops for Uniswap. Presuming BTC price steadies to kick-start a swift surge, UNI might recover and surge towards the closest resistance zone of $10.30. That would lead to a 20% increase from Uniswap’s current price, $8.55.
The surge in on-chain volume from 116.51 million on 13 February to 406.25 million on 19 February supports the optimistic move. Surprisingly, the alt saw its price declining during this period. Such developments signal divergence and predict a sharp increase.
IntoTheBlock’s mode further backs the upside move towards $10.31. The index indicates the nearest support, stretching between $4.89 and $8.91, remains relatively strong. Surprisingly, this support floor corresponds with the three-day demand territory highlighted above.
Therefore, market players may expect UNI to climb towards the resistance barrier of $10.91. Here, nearly 7,500 addresses that bought around 18.05 million Uniswap tokens remain underwater.
The technical viewpoint presumes that UNI price will experience a bullish momentum resurgence because of BTC recovery. Failure to trigger upside because of surged sell-side strength might see UNI price plunging lower.
Meanwhile, UNI producing a 12hr candle close beneath $7.31 will cancel the bullish narrative. That will have Uniswap towards the three-day support mark at $5.61.
Bitcoin’s price actions remain crucial in UNI’s directional bias. More weakness by the world’s largest digital coin will see Uniswap exploring lows. Nevertheless, buyers should step up to prevent declines for UNI.
