Uniswap Token Price Falling in Response to Channel Pattern; Back to $4.6?

Under the influence of a falling channel pattern, the Uniswap token price showed a steady downfall in the past five weeks. However, the very nature of this pattern is to resume a strong bull rally once the price breaks the overhead trendline. Thus, interested buyers must wait for pattern breakout to get the right entry opportunity.

Key points Uniswap token price analysis:

The UNI price will continue its downward spiral until the falling channel pattern is intact
A bullish RSI divergence suggests the UNI prices may soon witness a significant recovery
The 24-hour trading volume in the Uniswap token is $120 Million, indicating a 88% gain.

Source-Tradingview

The recent correction in the crypto market plunged the Uniswap token to local support of $5.27. The downfall has offset nearly 70% of gains obtained during the previous recovery rally. The coin price rebounded from the $5.27 support and initiated a minor pullback. 

The price reversal soared the Uniswap token price by 14.3% and retested the $6 level as potential resistance. Last three days, the coin chart showed a higher price rejection candle at the $6 resistance, indicating the sellers are aggressively deafening this level.

Moreover, the daily time frame chart showed the formation of a falling parallel channel pattern. The resistance trendline of this pattern wavering at the $6 mark offers an additional hurdle against the bullish growth.

This confluence resistance could exert significant selling pressure on traders to revert the prices lower. As a result, the potential reversal will indicate the resumption of prevailing correction and tumble of the Uniswap token price by 10.84% to break the $5.27.

On a contrary note, the technical setup indicates the coin price should eventually breach the resistance trendline to trigger a new recovery rally.

Technical indicator

RSI indicator: the daily-RSI slope shows an evident bullish divergence concerning the last two lower lows in price action. This divergence indicates growth in bullish momentum and a better possibility for the bullish breakout from the channel pattern.

Bollinger band indicator: the coin price retest to the indicator’s midline will encourage downfall continuation. 

Resistance levels- $6, $6.7
Support levels- $5.27 and $4.65