Uniswap's Price Jumps 20% on Trump's Tariff Pause

Uniswap, a leading decentralized exchange, has recently experienced a price bounce, moving from $4.55 to $5.5, a 20% increase. This rally was driven by relief across the market following President Trump's announcement of a 90-day pause on tariffs for all countries except China. The global stock markets, including the crypto market, saw a positive response to this news, with Bitcoin bouncing by 5% in an hour. However, despite this short-term relief, the long-term trend for Uniswap remains bearish.

Over the past two months, Uniswap's price has made lower lows and lower highs, indicating a strong downtrend. The Relative Strength Index (RSI) on the daily chart has been below the neutral 50 level since January, further supporting this bearish outlook. The On-Balance Volume (OBV) has not dropped below its March lows, offering some hope for a potential recovery, although it has not materialized yet.

The $5.5 level, which was previously a support level, is now acting as a resistance level. Until Uniswap's price can break out past this level, traders should exercise caution. The latest bounce in Bitcoin's price above $80k does not necessarily signal an immediate bullish reversal for the market. On the 4-hour chart, the price action of the past ten days has been bounded by a descending trendline, with the recent bounce unable to climb beyond it, further underlining bullish weakness.

While the RSI has climbed above the neutral 50 level on the 4-hour chart, and the OBV has set a slightly higher high, traders should remain cautious. A retest of the $5.52 level as support could be an opportunity to go long. However, until then, caution is advised. The $4.6 level has developed into a short-term support and could be tested soon. A move below this level would signal a bearish continuation, and traders could look to sell UNI short thereafter.

Technical indicators, such as short and long-term moving averages, also suggest a negative outlook for Uniswap. The relationship between these averages, where the long-term average is above the short-term average, further supports this bearish sentiment. Additionally, there is resistance from accumulated volume at $5.13, which is $0.333 (6.94%) above the current price of $4.80. This lack of support below the current price level increases the risk of further declines.

Traders expecting a rally in Uniswap's price may consider entry points at key Fibonacci retracement levels, such as $11.97 or $11.63. However, given the current market conditions, these levels may not be immediately achievable. The cryptocurrency is currently oversold on the Relative Strength Index (RSI14), which indicates that it may drop further before turning around. The predicted fair opening price for Uniswap on April 9, 2025, is $4.95, representing a 3.25% increase from the previous day's closing price.

The regulatory environment for Uniswap and other cryptocurrencies remains uncertain, with top crypto and finance leaders, including Uniswap, set to join a roundtable discussion on trading rules with the Securities and Exchange Commission (SEC). This discussion could have implications for the future of decentralized exchanges and the broader cryptocurrency market. Traders should closely monitor these developments to make informed decisions about their positions in Uniswap.