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Uniswap (UNI) is experiencing a downward movement due to the general market sentiment. The downtrend began on April 19 when the price dropped from $6 to $5. However, the price is gradually rising, which indicates that the bulls are gaining momentum.
This slight increase left traders wondering if the bearish trend is over and if the situation for Uniswap (UNI) can start to improve.
Signs of bullish sentiment as UNI rises
Notably, UNI is up 3.27% today to a high of $5.12 in the last 24-hour trading session. The 24-hour trading volume also rose by more than 97.72% to $68 million, indicating strong activity in the UNI market. This data shows that bulls create strong momentum when the market sentiment is positive.
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Moreover, the token is still ranked 22nd by CoinMarketCap with a market capitalization of $2.9 billion. According to CFGI.io, market sentiment for Uniswap (UNI) is optimistic.
The indicator confirms the bullish mood with a reading of 61, which means investors are greedy. This once again shows that investors are optimistic about the future potential and the recent price increase could be sustainable.
UNI technical analysis
Even with the rise in price and volume, UNI’s technical indicators remained inconsistent, with some pointing to a potential bear market.
UNI is currently trading below its 50-day and 200-day simple moving averages (SMA) and has formed a death cross, a bearish sign. The death cross contributed to the fall in prices as it forced traders and investors to sell their assets or go short.
The SMA indicator suggests that both the long-term and short-term trend is bearish. But the price may reverse if the bulls maintain their long positions. The relative strength index (RSI) at 40.20 suggests that the asset is not in the overbought or oversold area, but in the neutral range.
This indicates that there is no significant buying or selling pressure and UNI may experience some level of consolidation or positive price action.
The MACD indicator indicates a bearish trend, with the MACD currently below the signal line. The histogram also confirms the bearish momentum as it trades below zero.
At the time of writing, UNI is trading at $5.14. The bears are trying to break through the first support level of $4,746 several times.
However, if the bulls create strong momentum and break the significant $5.731 resistance level, it could trigger a bullish trend. The next support and resistance levels will be $3.358 and $7.651. The Uniswap price could also lose most of its gains if the bears successfully break through the support levels.
UNI price rises l UNIUSDT on Tradingview.com
Featured image from Pixabay and chart from Tradingview
