- Uniswap price has been on an uptrend since March 12, soaring 17% to $6.374.
- UNI could break past the 200-day EMA at $6.581 and tag the $7.212 resistance level.
- A daily candlestick close below the support confluence at $6.294 could invalidate the thesis.
Uniswap price (UNI) has been trading with a bullish bias since March 12, a correction influenced by traders flocking to the decentralized exchange (DEX) to trade USDC for other digital assets like UNI. The influx caused a massive surge in trading volume, contributing to a revenue increase while catalyzing a recovery rally. Traders exchanging USDC dominated almost 55% of the trade on Uniswap DEX. The uptrend was bolstered by the US Federal Reserve's announcement of a new bank lending facility, inspiring investors' confidence.
@federalreserve @USTreasury @FDICgov issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors' savings remain safe: https://t.co/YISeTdFPrO
— Federal Reserve (@federalreserve) March 12, 2023
Uniswap price soars on US CPI report
Uniswap price, like Bitcoin (BTC) and other tokens in the crypto playing field, has reacted positively to the latest US CPI report. The data came in at an expected 6.0% from a year ago, causing a sigh of relief from Wall Street, where many braced for a negative surprise.
BREAKING: CPI 6.0%
— Bitcoin Magazine (@BitcoinMagazine) March 14, 2023
An increase in buying pressure from current levels could extend UNI's upward trajectory as Uniswap price confronted the immediate resistance due to the 50-day Exponential Moving Average (EMA) at $6.362.
Past the hurdle mentioned above, Uniswap price could tag the resistance level due to the 200-day EMA of $6.581 or, in highly ambitious cases, ascend to battle the barrier at the $7.212 resistance level. This level was last tested on February 21, and tagging it would constitute a 13.45% increase from current levels.
UNI/USDT 1-day chart
On the flipside, if profit takers act now, Uniswap price could abandon the rebound rally and correct downward. Such a move would see UNI lose the immediate support due to the 100-day EMA at $6.318. In desperate cases, it could drop below the support confluence between the horizontal line and the ascending trendline of the V-shape formation at $6.294. A daily candlestick close below this level would invalidate the bullish thesis.
Further south, Uniswap price could descend to tag the $5.907 support level or, in extreme cases, revisit the $5.373 swing low where the latest rally sprouted. The descent would denote a 15.62% drop from current levels.
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