UNI Technical Analysis: Inverted Head And Shoulder Hints At 17% Jump

The UNI price action breakout entry opportunity for sideline traders' market price exceeds the 100-day EMA. Furthermore, the price action displays a bullish breakout of an inverted head and shoulder pattern in the daily chart. Therefore, the possibility of an uptrend in Uniswap prices increases drastically.

Key Points:

Source - TradingView

UNI Technical Analysis

As we mentioned in our previous analysis, the UNI price action showcases the bullish breakout of the 100-day EMA, resulting in a jump above the $6.75 mark. Furthermore, the price action analysis displays a bullish breakout of an inverted pattern with a neckline coinciding at $6.75.

The price action shows a 32% jump in the last two weeks, leading to a bullish turnaround in the 50 and 100-day EMA. Therefore, the uptrend increases the likelihood of a bullish crossover in the 50 and 100-day EMA.

The higher price rejection in the present daily candle projects a high possibility of a retracement to retest the $6.75 mark. Therefore, the sideline traders can find a retest entry opportunity at $6.75.

If the buying pressure sustains, the Uniswap prices will exceed the psychological mark of $7 overhead resistance of 200-day EMA close to $8.

Conversely, the bullish failure to prolong the uptrend will result in a bearish trend crossing below the 50-day EMA to test the $5.7 support level.

Technical Indicators

The RSI slope sustains a diagonal uptrend in the nearly overbought zone with a positive trend in the 14-day SMA. Furthermore, the rising trend in the MACD and signal lines reflect growth in buying pressure.

Therefore, the technical indicators highlight the increasing demand for Uniswap in the recovering market. As a result, the UNI technical analysis signals a buying opportunity at the current market price.

Resistance Levels - $8 and $10

Support Levels - $6.75 and $5.7