UNI rebound sings are slowly showing up after the altcoin crashed by 57% in just four days of trading at the start of this month. UNI logged a strong reversal trend as we are reading further in the latest altcoin news.
The UniSwap’s governance token was trading about 30% higher from the session lows of $3.68. The traders came back to raise the bids again for the cryptocurrency as the rivals in the decentralized finance space are facing a market-wide bearish pressure. It now seems that the UNI rebound signs are showing up because the token was among the only DeFi tokens that surged by a double-digit percentage on the 24-hour adjusted timeframe according to the data from Messari.
Chart analyzer Michael Van De Poppe, anticipated a slight trend shift after the UNI rebound and the analyst also added that the token has to hold the $3.75 and $3.90 level as a support to ensure an extended upside:
“If so, a higher low is constructed and the price of UNI can continue moving upwards.”
The token was trading in the early stage and lacked sufficient evidence of the ideal support and resistance targets. Traders expected to return to buying mode because of the involvement in the leading decentralized exchange in the world Uniswap. UNI remains the airdrop token similarly to the stimulus check that was given to the US citizens by the government. It is seen as the stimulus check or a gift to the users from the Uniswap team as they moved from a venture-capitalist funded model to a decentralized one. Many of the beneficiaries decided to sell the token causing the trend to flip bearish in the short-term.
More than 82,727 addresses are still holding the UNI tokens while Bitcoin and Ethereum are expecting further lows because of the unfavorable macroeconomic environment and traders are exposed in UNI and other cryptos could want to sell the former to try and offset their losses. It is a hypothetical scenario that could become true in the wake of a no stimulus deal by the US Congress and if also the dollar gets stronger.
UNI showed signs of rebound but it now faces many challenging resistance levels in the upper trendline of the descending channel. The token could correct lower to test the $4.39 level while keeping an eye on $3.39 for a slight pullback. UNI could extend the recovery by breaking above the resistance to target the $5.38 level with a Golden cross formation forming between the 20 and the 50-hour moving averages pointing to a favorable buying setup.
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