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-
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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.
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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.
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Investors should wait for UNI to show some signs of strength by crossing the $22 mark.
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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.
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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.
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A target of $33 and $44 can be set once a long entry is taken with a stop loss below the zone of $20.
Conclusion
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.
