- Uniswap price gets unleashed as traders reprice US Fed futures from a 50 to 25 basis point hike in February.
- UNI sees bulls set to break above the monthly R1 resistance level.
- Expect to see one remaining hurdle in the way before UNI can rally 25%
Uniswap (UNI) price strengthened on Thursday after the US inflation numbers came out. Although the data were in line with estimates, markets were not disappointed as overall inflation is still cooling. On the back of that, the Greenback weakened, equities jumped and cryptocurrencies rallied.
Uniswap getting unleashed as pivotal Fed level nears
Uniswap price currently sees bulls banging against the monthly R1 resistance level near $6.20. Once broken through there, only one element stands in the way of UNI pairing back all the incurred losses of the fall of 2022. Traders even repriced the US Fed futures from 50 basis points to 25 basis points for the next US Federal Reserve meeting in February.
UNI thus could be seen trading higher in coming months as this repricing from US Fed projections means that more money could be freed up to put into cryptocurrencies and other risk assets. Expect choppy price action, and once the dust settles over the inflation print UNI should break above the 200-day Simple Moving Average near$6.40. That would pave the road to rally up to $7.80 and book a 25% profit within two months.
UNI/USD daily chart
The big risk is that a lot could still happen along the way between now and the first US Federal Reserve meeting of February to get confirmation about this possible slowdown in rate hikes. Any comment or data point that points to a pickup in inflation would slam back the prospects of a 50 basis point hike on the table. Expect UNI to drop back to $5.60 in search of support at the 55-day SMA and the monthly pivot.
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