Uniswap to return to $14 as UNI finds support and willing buyers

Uniswap price continues to underperform its peers and the aggregate market.
Bulls appear to have disappeared or abandoned UNI.
Limited upside potential exists, but support may be developing.

Uniswap price action has been some of the most bearish and worst-performing of the past year. UNI is close to 80% below its all-time highs, but a mean reversion trade may be imminent.

Uniswap price action is highly oversold and likely to experience a mean reversion spike higher

Uniswap price may experience a bullish relief rally due to a combination of time cycles and overextended losses. Since the all-time high of $45 was formed on May 3, 2021, UNI has been in a downtrend. The length of the downtrend is nearly 300 days long – which is essential from a time cycle perspective.

In Gann Analysis, one of the most influential Inner Year Cycles is the 270-day cycle. It is the third most-powerful Inner Year Cycle. Gann wrote that there is a very high probability that an instrument will find a major swing high/low during this cycle, beginning a new 90-day cycle to end the full year.

Because of the 270-day cycle, Uniswap price has an extremely high probability of reversing and creating a new bullish trend – or, at the very least, a robust corrective move.

The Ichimoku Kinko Hyo system compliments the Gann Analysis from a price action perspective. The current weekly candlestick for Uniswap price is developing into a powerful reversal pattern known as a bullish hammer. But more importantly are the large, consecutive gaps between the bodies of the weekly candlesticks and the Tenkan-Sen. At the very least, a violent and swift move to the Tenkan-Sen at $14 is almost inevitable.

UNI/USDT Weekly Ichimoku Kinko Hyo Chart

However, downside risks do remain for Uniswap price. The extended 2021 Volume Profile and 2022 Volume Profile show very thinly traded volume between $9.00 and $5.00. If $9.00 fails to hold as support, bears may push UNI down the 100% Fibonacci retracement near $6.75.

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