- Uniswap price is forming a minor uptrend, but two major MAs are keeping price under pressure topside.
- UNI sees bulls ramping up buying as investors await a breakout to add further positions.
- Expect a quick pop above $25, which will spark a new rally towards $33.87.
Uniswap (UNI) started a fresh uptrend on November 26 but now has investors puzzled as both the 55-day and the 200-day Simple Moving Averages (SMA) are forming a cap preventing further upside. The Relative Strength Index (RSI) shows that bulls are being very busy bees with a spike in the RSI back above 50,showing that buyers are pre-positioning themselves for the next rally, which could come as soon as supportive tailwinds emerge, serving as a catalyst for the breakout higher.
Uniswap is ready for the breakout, holding 50% gains
Uniswap saw investors buying positions at the end of November, with the rally holding to a short-term ascending trend line. Bulls are now hesitating, however, as they try but fail to push price beyond $24, due to a blockage formed by both the 55-day and the 200-day SMAs. Meanwhile, the RSI reveals that bulls and investors are very busy buying chunks of Uniswap, looking to gear up for an imminent breakout above those moving averages.
UNI price action needs a catalyst to spark the fuse for the pop and breakout higher. With current market sentiment, that could be a headline on the Omicron virus that proves to be less severe and less life-threatening or headlines suggesting current vaccinations are resistant enough to fight this variant. Any other element that would shift global market sentiment to risk-on would do the trick equally well.
UNI/USD daily chart
If these catalysts emerge, expect bulls to quickly face and break through the monthly R1 and $27, before meeting the first tough resistance at $29.09. The next profit target from there is likely to be $33.87, which was September’s high. At that point, the rally will probably halt and fade as bulls hit a quarterly high and R2 resistance at $33.27 – a double-resistance level.
Should a catalyst not emerge relatively soon, expect bears to gently take back control and stop the uptrend by breaking the trend line towards $19.29. Should negative headlines about Omicron hit the wires, expect a spiral acceleration that will result in a nosedive for Uniswap price action back towards $12.92.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.