UNI has traded in a downside trend since its 2021 May highs. Meanwhile, the last few months have seen the crypto establishing purchasing support at the $13.00 – $14.00 price levels. The alternative coin bounced over this territory again at July ending.
It is the 3rd time the asset has registered such actions in 2021. For now, analysts speculate that the coin has found support in that region. That is because the overall cryptocurrency market has depicted bullishness recently.
What appeared like a relief rally turned out to be a massive uptrend. With that, most market players had a neutral-bullish attitude towards UNI. Most speculations indicated that the asset might experience a range-bound or correction in the coming weeks or months. Although, the possibility of plunges exists. Meanwhile, the losses might be unsustainable.
Potential Uniswap Golden Cross
The current price action sees the 50-day MA moving to the 100-day MA.
Uniswap has higher chances to form a Golden Cross. Technical analysts use this bullish indicator to predict the prevailing and futures events of financial securities. The developments happen when the near-term MA crosses over a long-term MA.
The Uniswap network depicts the 50-day MA (gray) moving to cross over the 100-day MA (green). That would result in a golden cross. Such developments will confirm the UNI’s bullish narrative.
Meanwhile, the MACD registers a down cross, indicating a potential slowdown in the current rally. Also, the ADX (Average Directional Index), a momentum indicator, plunged beneath 30, showing possibilities of further drops. With such actions, UNI might consolidate and correct over the $20.00 zone.
What to Do?
Are you holding UNI now? Congratulations on targeting the low entry price. It might be your time to book some profits. You can sell 25-50% of your UNI holdings and maintain your core positions. That is if you had purchased around the support territory. Avoid the mistake of offloading your entire holdings. The current rally might be near-term.
If you want to purchase UNI, for now, beware that the market is risky. Keep in mind that the asset has already gained over 100% in about one month. Early traders might decide to claim their profits. The best thing is to wait for a potential consolidation that would provide the best entry point.
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