The pair completed the ascending triangle pattern on the breakout and close above the upper resistance at $0.55. This has pushed the 4-hour chart’s RSI to overbought levels, which may tempt short-term traders to take profits.
The price may go down to the breakout level of $0.55. If the bulls turn this level into a support level, the pair may continue its upward move towards the target pattern at $0.65. This positive opinion may be invalidated in the near term if the price breaks below the uptrend line.
UNI / USDT
Uniswap (UNI) has been consolidating between $8.11 and $9.83 in the past few days. This indicates that the bulls are buying the dips but the bears are defending the general resistance.
UNI/USDT daily chart. Source: TradingView
The longer the price stays in the range, the stronger the breakout will be. The 20-day moving average at $8.54 is sloping up and the RSI is in positive territory, indicating an advantage for buyers. If the bulls push the price above $9.83, UNI/USDT could gain momentum and rise towards $10.55 and thereafter to $12.
Alternatively, if the price breaks below the current level and breaks below the 20-day moving average, this will indicate that the pair may continue its range-bound movement for some time. The bears will have to sink and hold the price below $8.11 to gain the upper hand.
UNI/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are defending the area between $9.50 and $9.83. If the price drops below $8.74, sellers will try to dump the pair at the strong support level at $8.11. Buyers are expected to buy on a dip to this level.
The flattening of the moving averages and the RSI near their midpoint indicates that the range-bound movement may continue for some time. The next trend move could start on a break above $9.83 or on a close below $8.11.
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Correlation / USDT
Chainlink (LINK) has been trading in a large range between $5.50 and $9.50 over the past several weeks. The bulls attempted to push the price above the range on August 12th, but the bears held out.
LINK/USDT daily chart. Source: TradingView
The 20-day EMA at $8.00 is sloping higher and the RSI is in positive territory, indicating that the bulls have the upper hand. If the price bounces off the 20 day EMA, the bulls will make another attempt to remove the upper barrier at $9.50. If they succeed, LINK/USDT could rise to $12.30 and then to $13.50.
Alternatively, if the price breaks below the 20-day moving average, it will signal that traders are booking profits near resistance. This could cause the pair to sink to the 50-day SMA at $7.00 and further stay within the range for a few more days.
LINK/USDT 4-hour chart. Source: TradingView
The price dropped from the upper resistance at $9.50 and broke below the 20-EMA on the 4-hour chart. This indicates that traders may book profits. The pair can fall to the 50-SMA, which may act as a strong support.
If the price bounces off the 50-SMA, the bulls will once again attempt to push the pair above $9.50. If they succeed, the pair may start the next phase of the upward movement. On the other hand, if the price drops below the 50-SMA, the pair may drop to $8.29.
CHZ / USDT
Chiliz (CHZ) has been in a strong recovery over the past few days but the long wick in the August 14 candlestick indicates that the bears are defending the general resistance at $0.19.
CHZ/USDT daily chart. Source: TradingView
Although the high of the 20-day moving average at $0.14 indicates an advantage for buyers, the overbought RSI indicates a slight correction or consolidation in the short term. If the price drops below the current level, the first critical level to watch on the downside is the 20 day moving average.
A strong bounce off this level will indicate that the bulls are viewing the dips as a buying opportunity. This will improve the odds of a breakout above the general resistance. If that happens, CHZ/USDT could rise to $0.22 and then to $0.24.
Alternatively, if the price drops below the 20-day moving average, the pair could slip to the 50-day simple moving average at $0.12. This movement will imply that this pair may form a range in the near term.
CHZ/USDT 4-hour chart. Source: TradingView
The sharp rise in this pair has pushed the Relative Strength Index deep into the over-bought territory on the 4-hour chart, indicating that a correction or consolidation was possible. The same may have started and the pair may drop to the 20-EMA, which is an important level to watch.
If the price bounces off the 20-EMA, it will indicate that the positive sentiment remains. Buyers will try again to resume the upward movement. This uptrend will be nullified in the near term if the price breaks and continues below the 50-SMA.