UNI, the token of UNISWAP, is currently forming a fairly strong decline from its peak level which indicates that the price is unable to find support to move higher, so trend determination is likely to be formed in the next few days, especially the mid-term trend.
Now, based on data from Coin Market Cap (CMC), at the time of writing, UNI has a market capitalization of $15,929,710,269 and a daily trading volume of $635,399,421 which makes this crypto ranked 9th in terms of market capitalization. And if we compare it to 2020, the market capitalization has experienced a very rapid increase as new investor interest in altcoins has increased.
4 Hour Chart Technical
At the time of writing, UNI has fallen deep enough from its ATH level to near its Higher Low, where the decline has been formed quite intensely as investors are concerned about the actions of the US government on crypto so this seems to have been shaped by the element of panic that has swept through the selling.
In my technical view, the bulls still have the potential to dominate in the long term, because apart from an on-rallying technical structure, UNI’s fundamentals will still be positive due to strong market interest in DeFi.
Here I try to describe it in the 4-hour technical chart below:
Based on the picture above, the price is in the Double Top pattern, which is now on the Red Up Trendline line which forms the basis of our analysis in this article, so whether or not the price is able to stay above it will be the medium and short term bullish basis..
In my view, at this time frame, Uniswap (UNI) has a Key Support-Resistance (SR) level that is capable enough for us to use as a handle in validating potential trends, namely at the levels of $ 26.10, $ 28.50 and $ 32, 60.
I read a strong break in one of these SR levels will be a good enough technical foundation to read where sentiment will lead investors for the UNI token, regardless of its long-term bullish potential due to DeFi support.
Daily Chart Technical:
Also, in the medium term view, this UNISWAP token has fallen from the Resistance Area which I mapped from several candles formed, which makes the Resistance Area a strong seller action point that needs to be broken to strengthen the bullish efforts.
In view of this analysis, the Red Up Trendline will be a ‘Validator’ of the Bullish potential, where a False Breakout may occur for us to anticipate, while still relying on the SR level on the 4-hour chart above, where the formation of a Low level will be very important to observe.
And for the Bearish scheme, the price continues to fall strongly and breaks the Red Up Trendline and ignores the existing Support levels, so I estimate the potential for a fall to reach the level of $ 17 – $ 22.
And for the fundamental view, the decline of the past few days is the impact of the actions of the US government which created panic among investors, like other crypto whack, so we can still expect a recovery, where strong DeFi support will remain the basis of UNI’s Green potential.
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Author: Syofri Ardiyanto
Crypto Enthusiast and Investor