|
Getting your Trinity Audio player ready...
|
After experiencing a prolonged downtrend, Uniswap (UNI) has begun showing bullish signs, prompting traders to wonder if a reversal is on the horizon. The market structure appears to be shifting, offering potential opportunities for investors watching UNI’s next moves.
Bullish Signs Emerge on the Daily Chart
From a macro perspective, UNI seems to be breaking free from a corrective pattern, while the intraday chart hints at an impulsive structure that could lead to a bullish continuation. UNI has been in a descending corrective channel since reaching its peak near $20 in December 2024. The most recent price action formed a WXYXZ correction, with the final leg (Z) bouncing from a historically significant support zone between $4.80 and $5.75.
This zone coincides with previous accumulation levels from mid-2023, as well as key support during the November 2023 market correction. UNI’s current breakout attempt from the descending wedge is crucial, as it could invalidate the ongoing bearish trend and signal a reversal.
Key Resistance Levels to Watch
The Relative Strength Index (RSI) has recently bounced from oversold conditions, providing further confirmation of the bullish outlook. UNI’s breakout attempt is aligned with wedge resistance and horizontal support at $5.75. A move above this level would confirm a structural reversal and invalidate the descending channel.
Short-term resistance is found around $6.58, which represents the last major swing high. If UNI can maintain momentum and break above this resistance, a longer-term target of $7.86 (Fibonacci 0.786 retracement level) is possible.
Wave Structure and Potential for Gains
Looking at the 1-hour chart, UNI shows a clear impulsive wave structure that suggests the start of a new bullish trend from the $4.74 low. If the price consolidates within the support zone and completes the current wave, UNI could push toward $5.75. If the bullish momentum sustains, UNI may see higher levels, with projections above $8 in the medium term.
The outlook for Uniswap (UNI) is cautiously optimistic. While strong confirmation is still needed, key resistance levels like $5.75 and $6.58 will be critical to watch. Traders should also keep an eye on support levels at $5.18 and $5.02, as any failure to hold above these could delay or negate the bullish scenario.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Uniswap’s $165.5M Boost: UNI Price Soars 10% as Fee Switch Nears Activation
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
