Uniswap (UNI/USD) has fallen by over 30% from the highs it hit earlier this month, however, it is now at a make or break zone. A reversal from the zone of $20 could give room to some huge targets however investors must be cautious as a breakdown from this zone could be the start of a sharp downfall in the price.
UNI has been in a sideways uptrend since May and it is back down to the support of the trendline. Investors are expecting a reversal after a strong candle seen on Friday.
What the charts say-
UNI is at a very crucial support level on its trendline which has been the zone of reversal multiple times in the past few months.
UNI was trading over 4% higher which is showing that the buyer has returned at the demand zone however this could be a small pullback before UNI falls further down thus investors must be patient before entering any long positions.
Investors should wait for UNI to show some signs of strength by crossing the $22 mark.
The RSI was in the oversold zone on Friday and a small pullback could be seen now thus investors must wait for UNI to cross $22 as it could continue falling after a small rise in the RSI.
If UNI is able to cross $22, it could be a great zone to buy UNI as a golden crossover was also seen which is indicating that UNI could be bullish in the coming weeks.
A target of $33 and $44 can be set once a long entry is taken with a stop loss below the zone of $20.
Investors should be patient with UNI and wait for a clear reversal before entering and long positions, however with the recent golden crossover it is looking like UNI could see some strong moves in the coming weeks.