Uniswap presents buy opportunity before UNI rallies to $58

Uniswap price develops a rare and powerful buying opportunity.
Massive bullish expansion moves up ahead.
Downside risks are limited to the near term and are easily invalidated.

Uniswap price action is setting up short-sellers for one nasty bear trap. Despite the presence of a possible triple-bottom breakout, a move lower would only further enhance the bullish reversal that is coming up.

Uniswap prepped for a 170% move higher

Uniswap price action on its $2.00/3-box reversal Point and Figure chart has developed a trifecta of potential bullish events. The first and most important is the development of a rare and powerful Point and Figure pattern known as a Bullish Shakeout.

The Bullish Shakeout pattern moves below a multiple bottom that does not exceed two to three boxes (non-crypto markets is two boxes max). Additionally, the pattern is only valid if the broader trend is bullish and if the entry occurs at a higher low. In the case of Uniswap, these requirements are only valid as long as the price does not move to $10.

The second and third bullish events happen simultaneously and are based on the momentum resulting from a valid Bullish Shakeout entry. As a result, Uniswap price will probably accelerate higher to the $30 price level. Once that occurs, the breakout above a double-top is confirmed, and Uniswap price will convert into a bull market at the same time.

The theoretical long trade idea is to set a buy stop order at $24, a stop loss at $16, and a profit target at $58. This represents a 4.25:1 reward/risk setup with an implied 170% gain from the entry. A trailing stop of two to three boxes would help protect any theoretical profit earned post entry.

UNI/USDT $2.00/3-box Reversal Point and Figure Chart

Uniswap price can move as low as $11 and still be valid, but if it reaches $10 before the entry is triggered, the trade idea is invalidated.

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