• Uniswap price maintains support in the $15 - $16 value area.
  • Price action suggests a drop is incoming, but the oscillators hint at a move higher.
  • Opportunities exist for bulls and bears.

Uniswap price action has remained stable enough to keep a prior long setup valid – a positive event given the bearish volatility affecting most of the altcoin market. Two trade setups with strong cases for each now exist for Uniswap.

Uniswap price leans bullish despite bearish near-term price action; a return to the $24 price level is expected

Uniswap price has been disappointing for many bulls, especially those who bought last Thursday and today. From the January 7, 2022 open to the swing high found on January 16, UNI gained a respectable 22% over those seven days. Fast forward to Wednesday, Uniswap has retraced more than that entire move in under three trading days. As bearish as that price action is, it doesn’t mean bears are in total control yet. There is a case for the bulls to take over.

On the long side of the market, a hypothetical long entry exists with a buy stop order at $24, a stop loss at $16, and profit target at $58. This trade is based on a bearish fakeout setup that simultaneously converts the $2.00/3-box Point and Figure chart into a bull market if the entry is triggered. In addition, a two-box trailing stop would help protect any profit generated after the entry.

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

The hypothetical long setup is invalidated if Uniswap price drops to $14.

There is an entry opportunity on the short side of the market on the daily Ichimoku chart. A close at or slightly below the 61.8% Fibonacci expansion at $14.78 would position Uniswap price at the lowest close since December 19, 2021. The profit target would be slightly below the 100% Fibonacci expansion level at $12.50. The stop loss is at $15.50. The trade represents a 3.3:1 reward/risk setup with an implied profit target of 15% from the entry.

UNI/USD Daily Ichimoku Kinko Hyo Chart

However, given the current pattern structure in the Composite Index, the short setup may not occur. An inverse head-and-shoulders pattern is present on the Composite Index and could surprise many traders looking to exit longs or enter new short positions. Abrupt and sudden support may appear near the identified short idea’s entry, so sellers may want to pay close attention to how Uniswap price responds near the $14.50 to $14.75 zone.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

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.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

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.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

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. 

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP