Uniswap Labs launched its venture capital arm Uniswap Labs Ventures on 12 April. However, price action for Uniswap (UNI) is showing mixed signals.
The UNI has been declining since reaching an all-time high of $48.12 on May 5. The fall so far has driven it to a low of $7.51 on February 24. The ensuing bounce validated the $8.30 area as support.
This is an interesting horizontal level as it previously acted as resistance on the day of launch, 18 September 2020 (red icon). Chances are that the area will now act as a support.
Following the bounce, the UNI broke through a descending resistance line that had existed since its all-time high. This is a sign that the downward movement may be coming to an end.
mixed indicator readings
The technical indicators for UNI on the daily time frame are mixed.
On the bullish side, both the RSI and MACD have produced a bullish divergence (green lines). These divergences were preceded by a breakout from the resistance line.
On the bearish side, both the RSI and MACD are declining. Furthermore, the former is below 50 and the latter is negative. These are considered to be signs of a bearish trend.
UNI Waveform Count Analysis
The most likely long-term calculation shows that the UNI is placed in the ABC corrective structure (white) when measured from the above all-time high value.
The sub-wave count is shown in black, indicating that wave C has evolved in a final diagonal.
cryptocurrency trader @JacobEmmerton Said UNI may complete a short-term running flat correction.
The bullish prospect actually suggests that the UNI is trending in a flat correction.
However, it is also possible that the price has already completed an ABC correction (red) and is now moving downwards. It would be better with the potential long term calculation already mentioned.
Due to mixed readings from both technical indicators and price action, the direction of the trend cannot be determined with any confidence.
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