Uniswap (UNI) drops after resistance rejection of $4.35
- The Uniswap token faces resistance at $4.35 and has support at $2.80.
- The UNI has passed an upward support line.
- The UNI/BTC pair moves within a descending bevel.
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The Uniswap (UNI) token price was rejected by a large resistance zone at $4.35, falling sharply shortly thereafter.
It is expected that the Crypto Bank token will continue to fall towards its support zones, before starting to rise again.
UNI falls after a rejection
The UNI price was up from its low of $1.75 on November 5. On November 15, the UNI reached a high of $4.24, which was very close to its primary resistance of $4.35. The price of UNI was up from its low of $1.75 on November 5. This resistance also matched the fibonacci retracement level of 0.382 of the previous decline.
Since then, the price has tried unsuccessfully three times to exceed its resistance. It is currently falling after being rejected on December 19th.
The nearest support zone is at $2.80, the fibonacci retracement level 0.618 of the overall uptrend.
The technical indicators are neutral but show a bearish tilt, as the RSI is on the verge of declining below 50 and the stochastic oscillator is again showing a bearish slope.
Further observation of the movement reveals that the UNI has been following an upward line of support since 12 December. That said, rejection has pushed it below that line, within a considerable bearish candlestick.
That said, another support line is at $3.11. This zone corresponds to the 0.5 fibonacci retracement level and also coincides with a downtrend resistance line (dotted line) that UNI had previously crossed.
It is therefore possible that the price of the UNi will reverse when it reaches this level, but there are no signs of an upward reversal yet.