Published 7 hours ago
The Uniswap (UNI) price rebounded from $3.37 support with a double bottom pattern breakout. A gradual rise in volume activity along with the recovery rally indicates growth in underlying bullishness. If the buying pressure persists, the altcoin may jump above $8.
Key points:
- The rising OBV indicator bolsters the double bottom pattern breakout.
- The SHIB price soared 51% in the last five days.
- The 24-hour trading volume in the Uniswap token is $309 Million, indicating an 115% gain.
Source-Tradingview
From mid-May to June, the UNI/USDT pair witnessed a minor consolidation between the $6 and $4.57. However, this range setup resulted in the bear’s favor as the coin price pierced through the $4.57 support.
The range breakdown indicated the continuation of a downward spiral and depreciated the UNI price by 26%. As a result, the downfall reached a low of $3.37 on June 14th.
The following week, altcoin retested the new support multiple times, and the long-tail rejection attached to those candles suggested a high-demand zone.
Furthermore, the price action wobbling above $3.37 support showed the formation of a double bottom pattern. Moreover, on June 11th, the UNI price gave a bullish breakout from the $4.57 neckline aligned by high volume activity.
Today, the UNI price retested the flipped support($4.57) and has surged 4.19%. The sustained buying should encourage buyers to breach the $6 resistance and rally 66% higher to the $8 mark.
However, the higher price rejection showcased on June 11th daily candle suggests supply pressure from above, which keeps a fake-out possibility on the cards. If that theory turns out to be true, the coin price will revisit $3.37.
Technical indicator
Along with the $4.57 breakout, the UNI price also poked a dynamic resistance of 20-day EMA. Thus, this EMA switched to valid support gives an extra edge to long traders.
The daily-RSI slope entered bullish territory indicates possibly sentiment building up on the Uniswap token.
- Resistance levels- $7.5, $9.8
- Support levels are $4.57 and $5 3.37
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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