Uniswap price contemplates 65% gains as UNI grapples with vital resistance
- Uniswap price is consolidating below two crucial barriers, $27.48 and $29.49.
- A decisive close above 50% Fibonacci retracement level will confirm the start of a new uptrend to $45.
- If UNI fails to hold above $22.29, however, it will invalidate the bullish thesis.
Uniswap price has been stuck below a significantly challenging resistance level for roughly five months and is finally ready to breakout. A decisive close above this barrier will kick-start a massive uptrend for UNI.
Uniswap price looks ready for a blastoff
Uniswap price rose roughly 55% over the past month as it tried to slice through the 50% Fibonacci retracement level at $29.49. This blockade has been a thorn in UNI’s side since the May 19 drop and it has not been able to breach it for over five months.
Once it breaks through, the pent-up buying pressure at that level will probably lead to a massive blastoff that will push Uniswap price to slice through the immediate resistance barriers at $33.31, or the 62% Fibonacci retracement level, and subsequent levels.
Clearing the 79% Fibonacci retracement level at $38.48 is crucial as this move would open the path to a retest of the range high at $45, aka the all-time high. The run-up from the current position to $45 would constitute a 65% ascent.
UNI/USDT 1-day chart
On the other hand, if Uniswap price fails to breach $27.48 or $29.49, it will indicate that sellers are still in control. In such a case, UNI is likely to retrace to the immediate support level at $23.47, from where it can try to make a comeback.
If sellers produce a lower low below $22.29, it will invalidate the bullish thesis. This development is likely to trigger further selling pressure, knocking UNI down to $19.45.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
