Uniswap holds off bear attack as UNI positioned for a 100% drive higher
|- Uniswap price holds support to maintain a previous long entry opportunity.
- If triggered, the price action will likely turn UNI into a leader in the altcoin space.
- Threats to the downside exist but are limited.
Uniswap price held onto its 61.8% Fibonacci retracement as its final support zone, denying bears any further opportunity to push UNI lower.
Uniswap prepped for move towards $58
Uniswap price action, on its $2.00/3-box reversal Point and Figure chart, has developed a trifecta of potential bullish events. The first and most important is the development of a rare and powerful Point and Figure pattern known as a Bullish Shakeout.
The Bullish Shakeout pattern moves below a multiple bottom that does not exceed two to three boxes (non-crypto markets is two boxes max). Additionally, the pattern is only valid if the broader trend is bullish and if the entry occurs at a higher low. Those requirements are valid as long as Uniswap price does not move to $10.
The second and third bullish events happen simultaneously and are based on the momentum resulting from a valid Bullish Shakeout entry. As a result, Uniswap price will probably accelerate higher to the $30 price level. Once that occurs, the breakout above a double-top is confirmed, and Uniswap price will convert into a bull market at the same time.
The theoretical long trade idea is a buy stop order at $24, a stop loss at $16, and a profit target at $58. The trade idea represents a 4.25:1 reward/risk setup with an implied 170% gain from the entry. A trailing stop of two to three boxes would help protect any theoretical profit earned post entry.
UNI/USDT $2.00/3-box Reversal Point and Figure Chart
Uniswap price can move as low as $11 and still be valid, but the trade is invalidated if it reaches $10 before the entry is triggered.
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