Uniswap Prices Explode, Will UNI/USDT Bulls Break Above $30?
Uniswap is one of the top performers in the previous trading days.
It may be the slow, steady, encouraging, and calculated plans to merge Optimism that’s triggering UNI demand. At the same time, the revival could be due to the general confidence across the board forcing savvy investors back to UNI.
Come what may, Uniswap is one of the most valuable DeFi projects, and UNI is a closely watched token for savvy traders and investors.
Uniswap Market Performance and Price Status
Presently, Uniswap commands over $5 billion in TVL while its token, UNI, is up double digits week to date following the revival over the weekend.
From the daily candlestick, there are indicators of strength and potentially, the end of September 7-induced weakness that saw the coin crumble.
At the moment, there is a triple-bar bullish reversal pattern printing from around the psychological $20 mark.
The bull bar of September 26, for instance, is distinguished with the high trading volumes signaling demand from the grassroots.
Moreover, the conspicuous, wide-ranging candlestick is a bullish engulfing type, encouragingly rewinding losses of September 20.
For now, there might be entries for aggressive UNI traders angling to add on pullbacks as they target $30 in the immediate term. The liquidation level represents August 2021 highs.
Uniswap crypto bulls need to flow back and close above this reaction level for the buy trend continuation. Ideally, the close above resistance must be with above-average trading volumes.
In that case, UNI may fly back to $45 in continuation of the early Q3 2021 trend.
Conversely, reversals of September 26 gains below $18 could see UNI further shrink to $15 or worse.
Uniswap Breakout above $26 Validates the Uptrend
Bullish as Uniswap prices are, one trader on Trading View thinks the best approach is to wait for a solid close above the main liquidation trend line at $26 or $27.
The analyst observes that UNI/USDT prices are trending inside a descending channel. The surge of September 26 represented a reaction from the primary support trend line.
Since Uniswap prices are bound within a bull flag—or a bear channel, a close above $26 and $27 may signal investors’ shift in trend and interest. In that case, the trader expects more gains, ideally back to $31—September and August 2021 highs—and better.
Uniswap Bulls in Control?
Meanwhile, another trader thinks the uptrend is now valid.
From events in the 1HR chart, UNI/USDT prices are throbbing higher with above-average trading volumes, explaining the growing bull momentum.
Notably, the signal lines are diverging, suggesting a build-up in demand in lower time frames despite the lack of a solid follow-through in the higher time frames.
The surge of September 26 provided the impetus, sparking demand in a lift-off to spot rates. While UNI longs are valid, a close above the main resistance trend line at $25 would see prices break away to a new trading range after sustained lower lows over the last four weeks of trading.
Charts courtesy of Trading View
Disclosure: Opinion is that of the author. Do your own research.