- Uniswap is getting ready to move to new all-time highs around $28.
- A double-bottom pattern suggests that UNI is drawing closer to a breakout point.
- The IOMAP shows the difficulty in the upswing, bringing to light the possibility of consolidation.
Uniswap has recovered from the most recent dip to $17. The losses came into the picture after the decentralized finance token (DeFi) hit an all-time high of $24. Resistance intensified, making it difficult for the bulls to rally above $25. Meanwhile, a critical technical pattern suggests that UNI is on the verge of lifting off to new all-time highs around $28.
Uniswap nurtures the ultimate technical breakout
Uniswap is trading at $21 at the time of writing. The cryptocurrency has also stepped above the 50 Simple Moving Average (SMA) on the 4-hour chart, validating the current uptrend.
The Moving Average Convergence Divergence (MACD) hints at the trend is flipping bullish in the same timeframe. The indicator has settled above the midline. In addition to that, the MACD line (blue) almost crosses above the signal line.
A comprehensive look at the chart brings to light the formation of a double bottom. The pattern is regarded as a trend reversal in technical analysis that is shaped following extended downtrends when two “bottoms’ appear on the chart.
As the price nears the second bottom, selling pressure starts to diminish, leading to a bullish impulse. After the price breaks the neckline (horizontal trendline), a significant move follows. In the same way, if Uniswap slices through the neckline, we can expect the price to make a 25% move to new record highs around $28.
UNI/USD 4-hour chart
The expected uptrend could materialize due to increased buying volume since whales appear to be on a buying spree. According to Santiment, holders with 1 million to 10 million UNI have grown significantly over the last 30 days from 57 to 65.
The improvement in these large holders is a positive impact on the price of the token because of the volume they move. Therefore, if buying pressure continues to soar, Uniswap could soon hit a new high.
Uniswap holder distribution
Looking at the other side of the picture
The IOMAP model by IntoTheBlock suggests that Uniswap is likely to consolidate at the current price level before a breakout comes into the picture. A robust seller congestion zone runs from $21.3 to $21.7. Here, roughly 2,300 addresses had previously bought approximately 9.1 million UNI.
Uniswap IOMAP chart
On the flip side, immense support has been put in place to ensure that declines are avoided. For now, the most substantial support runs from $20.3 to $20.8. Here, about 2,800 addresses are profiting from the roughly 13.2 million UNI. It is doubtful that losses will slice through this area, thus validating the consolidation.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.