UNI Technical Analysis: Uniswap Preps Bullish Pattern Breakout
Table of contents
Key technical points:
Past Performance of UNI
UNI price action showcases a bullish reversal from $3.5 with a double bottom breakout resulting in a 60% price jump between June 19th and 25th. However, the reversal rally loses against the selling at $5.90, resulting in a dip to retest $4.50. Moreover, in doing so, the price action teases an inverted head and shoulder pattern forming in the daily chart.
Source- Tradingview
UNI Technical Analysis
The bearish retracement comes with a dip in the trading volume and halts at the 50-day SMA(red). If the UNI price sustains above $4.50 to rechallenge the $5.90 sellers, it will complete the bullish pattern and increase the likelihood of a prolonged uptrend continuation. The crucial SMAs – 50, 100, and 200-days marked as red, orange, and black maintain a bearish alignment teasing a potential reversal. However, the market price surpassing the 50-day SMA displays a rise in underlying bullish sentiments.
The MACD and signal lines showcase an uptrend crossing above the zero line while struggling to maintain a positive alignment. Hence, the indicator showcases a bullish trend in motion but warns of a bearish crossover. The RSI indicator shows the slope retracing under the halfway line and the 14-day SMA. Hence, the indicators showcase weakness in buying pressure cutting points from the uptrend possibility. In a nutshell, the UNI technical analysis shows a bullish reversal opportunity, but the decreasing buying pressure will sabotage the reversal pattern.
Upcoming Trend
If UNI prices sustain above $4.50, the uptrend will continue, potentially breaking above the $5.90 neckline to reach the $7 mark.
Resistance Levels: $5.90 and $7
Support Levels: $4.5 and $4