Exchange Tokens Regain Footing After Sharp Drop
2 min readUniswap (UNI) has been decreasing since reaching an all-time high price of $45, on May 5. However, it has bounced at the $34.60 support area.
Binance Coin (BNB) reached a new all-time high price, on May 10.
Curve Dao Token (CRV) has bounced at the support line of an ascending parallel channel it has been trading in, since the beginning of February.
Binance Coin (BNB)
BNB has been moving downwards since reaching an all-time high price of $691 on May 10. It began a sharp decrease on May 12, and reached a low of $541 the next day.
However, it bounced shortly afterwards and has reclaimed the $600 area. In addition, the area coincides with an ascending support line that has been in place since April 18. As long as it is trading above them, the trend can be seen as bullish.
However, technical indicators are turning bearish. The MACD has created the first negative momentum bar since April 3. The Stochastic Oscillator is close to making a bearish cross, while the RSI could soon fall below 50.
A breakdown could cause a sharp decrease all the way to the $450 support area.
However, until BNB either bounces from this area or breaks down, we cannot accurately determine the direction of the trend.
Highlights
- BNB reached a new all-time high price, on May 10.
- It is trading above support at $600.
UniSwap (UNI)
UNI has been decreasing since reaching an all-time high price, on May 3. It reached a low of $33.46, on May 10, and bounced.
While it decreased once more yesterday, it has created a higher low since and is in the process of creating a hammer candlestick, which can be seen as a bullish reversal signs.
Furthermore, the candlestick is being created right above the $34.70 area. This level has intermittently acted as both resistance and support, and the recent bounce confirms it as a support level.
If UNI continues to increase, the next closest resistance levels are found at $45 and $52, respectively.
A breakout from the short-term descending resistance line in place since the aforementioned all-time high would confirm that UNI is heading for new highs.
Highlights
- UNI has bounced at the $34.70 support area.
- It is following a short-term descending resistance line.
Curve Dao Token (CRV)
CRV has been trading inside an ascending parallel channel since Feb. 26. On April 26, it reached the support line of this channel, seemingly completing a running flat correction. This is potentially wave four (white) of a bullish impulse.
Technical indicators are bullish, supporting the possibility that CRV continues to increase. This is especially evident by the RSI cross above 50 (green arrow).
Potential targets for the top of the movement are found at $5.55 and $7.58, respectively. The former is also a horizontal resistance level.
Highlights
- CRV is trading inside an ascending parallel channel.
- It has completed a running flat correction.
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