UNI/USD continues to run into headwinds which produce stronger selling within the cryptocurrency, and support levels appear vulnerable.
After attaining a high around the 45.00000000 mark in early May, UNI/USD has struggled. On the 24th of May, UNI/USD briefly traded below the 13.00000000 level. While Uniswap has climbed since this low, its current short-term range exhibited technically is largely between 21.00000000 and 29.00000000. Broad market sentiment remains nervous and this is not helping UNI/USD momentarily.
Speculators who take a look at six-month charts of UNI/USD may also want to consider the rather ominous perception that the cryptocurrency is trading near support levels from the last week of February until the first week of March. Yes, this excludes the lows made on the 20th and 21st of May which touched much lower depths, but this also adds to the potential puzzle that speculators may be trying to solve.
Clearly, the bearish trend within UNI/USD seems genuine, but the question that should be asked is where legitimate targets await for traders wanting to use take-profit orders. Like any speculative asset, it often proves to be unwise to keep a trade open for too long and not have realistic expectations. Aiming for current nearby support levels is the key to success. If current support levels are hit, traders should be happy with those results.
Speculators need to understand that UNI/USD remains volatile and reversals higher can certainly emerge. Resistance levels, however, the past have been durable handful of trading days, and reversals lower which continue to demonstrate the ability to create new short-term lows have been evident. If the important support junctures are penetrated with speed, UNI/USD could find that it is testing February values.
Curiously transaction volume within UNI/USD over the past couple of days has remained rather average. If nervous technical sentiment was hit by additional bearish momentum, support levels which have been rather stable near the 21.750000000 could be punctured lower. However, first UNI/USD needs to break below its current support level of 22.77000000 to create more momentum.
Tactically, it appears that remaining a seller within UNI/USD may be the best speculative wager. Yes, this is a cryptocurrency, and volatility can be demonstrated without any notice. But the trend within UNI/USD has been negative in the short term and until a reversal emerges which shows it can be sustained, traders may continue to logically pursue selling positions of UNI/USD.
Uniswap Short-Term Outlook:
Current Resistance: 23.9200000
Current Support: 22.77000000
High Target: 24.95000000
Low Target: 19.83000000