Uniswap Consolidates, Will UNI Bulls Break Above $27?

Uniswap is the king of DEXes, no doubt. With daily trading volumes to rival CEXes, the project is the pride of Ethereum and all other decentralized systems seeking inspiration from the pioneer smart contract platforms.

Out of Uniswap, there have been similar projects using its code but launching from other platforms like BSC—think PancakeSwap.

However, it is Uniswap that continues to innovate, not resting on its laurels. At the time of writing, UNI is one of the most valuable DeFi tokens in the top-15.

Uniswap Market Cap and Price Status

With a market cap of $15.1 billion, the token may be undervalued, according to optimists.

They cite the impending launch of Layer-2 Optimism to circumvent high Gas fees and draw more users. Besides, the community can decide to vote for another round of liquidity mining.

Although rewards may be halved or chopped, unlike the first phase, it would still support UNI. In that case, the token might expand, rising to the top-10.

Technically, UNI is bullish from a top-down approach. Even though they might be pockets of weakness, the trend is defined, and $22 is the primary support line.

From now on, traders would closely watch how prices react at $27—this month’s highs—and $22 for short to medium-term trend definition.

If Uniswap bulls flow back to mirror gains of early Q3 2021, a break above $30 might be the foundation for another swing towards all-time highs of $45.

Conversely, there would be more pain for Uniswap holders if $22 fails and bears push the token back to $15—or worse.

UNI Prices inside a Bull Flag

A trader on Trading View thinks there is room for UNI/USDT prices in the coming sessions.

Specifically, the analyst notes that UNI is within a bull flag. Therefore, despite the recent cool-off, buyers are in the driving seat.

Per his assessment, a close above $27 and the primary resistance trend line may see the coin race back to September 2021 highs and later $40 in a buy trend continuation pattern.

On the flip side, he assesses that losses below $23 would pour cold water on the uptrend, paving the way for sellers. As mentioned earlier, the Uniswap token has the primary support at $15.

Uniswap Primary Support at $22

On YouTube, a trader notes that the $22 level is a critical support line for Uniswap that must hold for the uptrend to be valid.

The analyst explains that though UNI is under pressure, printing lower lows inside a descending channel, the reaction at $22 would prove definitive in the short term.

Per his prediction, a sharp break below $22 could open the door for possible losses towards $20 and later $15.

On the reverse side, a favorable action at around $25 may ignite buying pressure, stimulating buyers in a buy resumption pattern.

This is the same view of another trader on YouTube.

He notes that support is at around $23 while resistance is at $27 though this is unclear. If buyers close above $27, Uniswap may race towards $30.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.