Uniswap analysis: UNI price can double based on a classic technical pattern

The market valuation of Uniswap, (UNI), could increase by 100% in 2022’s second half. It is a classic bearish reversal pattern.

Bullish setup for UNI price

The technical setup is known as “inverse head and shoulders” (IH&S). It occurs when the price forms three troughs below a common support level (neckline). The middle one (head), is deeper than the two other (shoulders).

It also resolves when the price breaks below the support level.

The UNI price trend as of May 23rd checks all boxes for forming an IH&S-type pattern, with the exception of the right shoulder. The right shoulder could be formed by a retest at its neckline, which is near $5.71, increasing the likelihood of an iH&S breakout scenario as shown below.

Daily price chart UNI/USD with IH&S setup Source: TradingView

Technical analysis dictates that the price of an IH&S structure breaking free can rise by the maximum distance between its lowest point and the neckline. UNI’s IH&S upside target is $9.78. This is more than 100% increase from June 2’s price.

Contrasting Uniswap price signals

Uniswap’s longer-term charts highlight resistance levels that could prevent UNI from reaching their IH&S goal.

This includes a $6 interim resistance level that has repelled UNI’s price from lower at least three times since May. UNI could break the $6 level and face support at $7.52 in February 2022. This test was before a 75% price rise to $12.48.23.

The $7.52 level coincides also with UNI’s 20-week exponential moving mean (20-week EMA, the green wave in below chart), which is now at $7.90.

1-Week candle chart for USD/UNI Source: Tradingview

A decisive pullback below the $6 resistance level could lead to a bearish technical setup, also known as a “bear Flag.”

Related: Finance Redefined. Uniswap moves against the bearish trend, surpassing Ethereum

UNI has been declining since testing levels of $6. This coincides with the flag’s upper trendline. The UNI/USD pair has two possible outcomes: a decline towards the flag’s lower trendline at $3.92 or rebound to a potential breakout above that line.

UNI/USD price chart for three days featuring a ‘bear flag setup Source: TradingView

UNI’s move towards $3.92 could trigger the bear flag breakdown scenario. This would mean a 45% plus decline to $2.75 based on June 2’s price. A break above the trendline would render the flag setup invalid.

com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/uniswap-analysis-uni-price-can-double-based-on-a-classic-technical-pattern

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Donna Burk

Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami