Uniswap (UNI) Price Finds Footing at Key Support — Upside Potential Building

Key Takeaways

• Breakout retested and held above $5.75.
• RSI is recovering from oversold, but it is still uncertain.
• Bullish impulse needs confirmation above $7.86.
• Interested in buying or selling UNISWAP UNI? Read our review of the best exchanges to buy and sell UNISWAP UNI.

Uniswap (UNI) shows bullish signs after its second interaction with the key support zone.

Higher time frames suggest a prolonged correction could have ended, while lower time frames indicate early signs of an uptrend in development. 

UNI Price Analysis

The 4-hour chart reveals a textbook descending channel formation, with the price consolidating in lower highs and lower lows since the Dec. 8 high of $19.35. 

After forming a local bottom at $5.5 on March 11, UNI broke above the descending channel resistance, reaching a high of $7.10 on March 25, signaling a potential reversal. 

It made a pullback that retested the broken resistance for support, reverting to the $5.50 area. 

The Elliott Wave structure suggests this corrective phase may have been an ABCDE, with Wave E likely completed at the recent low. 

Yet, the weak bullish impulse post-breakout indicates that the correction may still be incomplete or part of a larger complex structure.

The Relative Strength Index (RSI) momentum on the 4-hour chart is currently hovering near 52, suggesting a neutral outlook. 

This came after reaching the oversold zone on March 31, indicating the increasing bullish momentum. 

Looking for a safe place to buy and sell UNISWAP UNI? See the leading platforms for buying and selling UNISWAP UNI.

Notably, there’s no confirmation of strong buying pressure post-breakout, which casts doubt on the strength of this recovery. 

Until UNI reclaims the 0.786 Fibonacci level at $7.86 with conviction, the bias leans toward sideways or even bearish continuation if the price falls below the critical support zone below $5.75. 

UNI Price Prediction

The one-hour chart clarifies short-term movements, showing the breakout from the channel as part of a lower-degree impulsive wave. 

Following a swift push to $7.15, the price pulled back and found support at the $5.75 level, which could be the second sub-wave of the developing five-wave impulse.

A bounce from the support zone’s upper level occurred, leading to a 12% rise, possibly the developing wave 3. 

If buyers successfully defend this zone, UNI could initiate a new bullish wave toward $8.20 (1.618 extension).

However, if $5.75 fails to hold and the price dips below it on the next downturn, the structure would likely invalidate the bullish count and reinforce a continuation of the broader corrective structure. 

The RSI on the 1-hour has dipped below 40, suggesting bearish momentum in the short term, but any bullish divergence forming here could act as an early signal for the next leg up.

Given the lack of bullish volume and hesitant RSI strength, traders should prepare for more consolidation before directional conviction returns.

Key Levels to Watch

• Immediate Resistance: $7.15 (recent local high post-breakout).
• Key Resistance: $7.86 (0.786 Fibonacci retracement level).
• Bullish Target: $8.20 (1.618 Fibonacci extension of the current wave).
• Immediate Support: $5.75 (channel breakout retest zone and wave 2 base).
• Critical Support: $5.50 (local bottom and potential invalidation level).
• Invalidation Zone: Below $5.50, negating impulsive bullish wave scenario.