Uniswap could return to $16 if it UNI holds this support level

Uniswap price closed Thursday with a nearly 8% loss. However, it remains higher by a considerable amount from the January 2022 low at $9.55.

Uniswap price tests the Tenkan-Sen as its final support level – make or break conditions now present for UNI

Uniswap price has spent the Friday session trading in a tight range above and below the Tenkan-Sen at $11.44. The Tenkan-Sen is the final Ichimoku support level on the daily chart currently keeping UNI afloat. In addition, the 2022 Volume Point Of Control sits just below the Tenkan-Sen at $11.20, further enhancing this support zone.

If bulls manage to keep Uniswap above the Tenkan-Sen, then the next resistance zone to tackle is the prior 100% Fibonacci expansion at $12.68. $12.68 is also the cutoff point in the volume profile, where it goes from thick to thin. Minimal volume has been traded between $12.68 and the next high volume node at $16 (the 61.8% Fibonacci retracement).

UNI/USD Daily Ichimoku Kinko Hyo Chart

Thin volume profiles indicate quick and easy movement. When price moves out of a high volume node into a thin volume profile range, it is like a vacuum – price gets sucked into the next high volume node. For Uniswap price, the next high-volume node is at $16.

If Uniswap price closes below the daily Tenkan-Sen, then there is a genuine risk that a bearish continuation move will begin and could exceed the 2022 lows to test the 1005 Fibonacci extension at $6.78.