Technical indicators show no sign of a bullish turnaround.
The UNI is probably completing a bearish momentum.
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The price of the Uniswap (UNI) token stopped its decline on 22 September. However, the subsequent upward movement was weak and has already shown a retracement. A drop below $3.78 is expected to accelerate the rate of decline.
The UNI has been in decline since September 25 when the price peaked Bitcoin Evolution at $5.55. The price has been declining since then. This decline follows a downward line of resistance, which has so far rejected the price three times.
UNI is unable to recover.
At the time this article was written, the UNI course was moving within the $3.85 support zone.
If UNI exceeds its downside resistance line, the next one will probably be at $4.85.
UNI Long-Term Levels
A slightly longer-term perspective shows that the price is currently moving close to the 0.618 fibonacci level of the entire upward movement. If it falls below this level, it could lead to a rapid drop to the $2.85 level, or even lower.
The RSI is below 50 and has not generated the slightest bearish divergence. It is therefore likely that the price will eventually fall below the above-mentioned level.
UNI 6-hour Chart
Cryptoney trader @TheEurosniper shared a chart from UNI, stating that the two most likely scenarios for the next price move would be a rise to $5.70, or a drop to $2.50. The EuroSniper’s chart shows that the next price move would be a rise to the $5.70 level, or a drop to $2.50.
The rise of the UNI from the bottom of 22 September seems corrective rather than impulsive, due to the considerable overlap between the new peaks and troughs. On the contrary, the decline that started on 25 September seems impulsive, indicating that the trend is probably downward.
The wave count suggests that the course completed an A-B-C correction between September 22 and 25. Since then, it has been declining on a downward momentum (both are shown in red).
In this case, the price is currently in a fifth wave. A first target for the end of this wave would be near $2.98, which is in line with the support zone mentioned above.
UNI Bearish Impulse
In conclusion, the course of the UNI should eventually pass below its support zone and move towards a new low.