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UNI Struggles to Find Support After Breakdown

2 mins
Updated by Ryan Smith
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In Brief

  • UNI has lost the $2.60 support area.
  • The price is following a descending resistance line.
  • UNI is likely in the fifth and final wave of a bearish impulse.
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The Uniswap (UNI) price has broken down from a crucial support level and has been falling since. While the price has shown some preliminary bullish reversal signs, it hasn’t yet been confirmed.

UNI Breaks Down From Support

The UNI price has been gradually declining since it reached a high of $8.6 on Sept 18. While the fall has been swift, the price seemingly found support above the $2.60 area on Oct 7 and began an upward move. However, it was rejected once more by the descending resistance line, and on Oct 29 broke down. Currently, there are no horizontal support levels besides the $0.30 area, which was the beginning of the upward move. There is also no descending support line that UNI is following.
UNI Resistance
UNI Chart By TradingView

When Will the Decline Come to an End?

Cryptocurrency trader @CryptoNewton stated that the UNI price is trading inside a parallel channel and could soon drop to $1.53.
UNI Movement
Source: Twitter
Since the support line has not been validated enough times, the channel ahs been created by projecting the resistance line to the two lows. By doing so, the middle of the channel falls at $1.30, while the support line is at $0.60. The RSI has begun to generate bullish divergence and is in oversold territory, however, there is no confirmation that the price has begun a reversal. A breakout from the resistance line of the channel would signal that the price has begun a relief rally.
UNI Descending Channel
UNI Chart By TradingView
As for the wave count, it’s possible that UNI is in the fifth and final wave of a bearish impulse (shown in red below). A likely target for the bottom of the move would be between $1.30 and $1.50, found by using a retracement of the entire move and on waves 1 – 3. Furthermore, this area is very close to the middle of the channel, making it a likely level for a bottom.
UNI Wave Count
UNI Chart By TradingView

Conclusion

To conclude, due to the lack of horizontal support levels, it’s not certain where the decline will stop for UNI. When using Fib levels, the first preliminary support area is found between $1.30 – $1.50. For BeInCrypto’s latest Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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