Uniswap price coiled and ready to spring to $57
- Uniswap price continues to face significant pressure higher, constant rejections wearing on long term hodlers.
- Price action favors the setup of a bear trap, longs close to taking control.
- The vertical profit target method in Point and Figure confirms the Fibonacci extension level for a new all-time high.
Uniswap price could be nearing the end of its painful and choppy price action. With the broader market continuing to accelerate higher, Uniswap will be a beneficiary of that movement and is likely to begin a rally towards new all-time highs.
Uniswap price targets a breakout above $30 to test $57 as the new all-time high
Uniswap price on the $1.00/3-box reversal Point and Figure chart shows a highly bullish combination of price action is developing. The dominant trend is represented by the red diagonal angle, which is bearish. The current column of Xs needs to move and close at $30 to covert the Point and Figure chart into a bull market. A close at $30 also confirms a bear trap formation.
The simultaneous break of the bearish trendline and the confirmation of a bear trap creates significant buying pressure. A significant number of short-sellers still maintain open short positions, and many added more during the trading week. A spike to $30 and higher will generate a substantial short squeeze, creating further bullish buying pressure as Uniswap price moves higher.
UNI/USDT $1.00/3-box Point and Figure Chart
The only risk to invalidation of the bullish bias is if a new column Os forms and pushes Uniswap below the double-bottom at $20. If that occurs, then new all-time lows could very quickly develop. As a result, any bulls entering the recent trading range will likely abandon their positions and cut their losses quickly.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
