• 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.

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Cryptocurrency exchanges are on board Terra’s LUNA hard fork and Do Kwon’s plan for the Terraform Labs token’s rebirth. Do Kwon has garnered support from leading cryptocurrency exchanges for the new Terra chain. 

More Terra News

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Ethereum dipped below the $1,900 support level over the past few hours. A decisive close below such a vital demand zone will put ETH at risk of a 38% correction toward $1,200. 

More Ethereum News

A big price move is coming for Binance Coin; here’s what to look out for

A big price move is coming for Binance Coin; here’s what to look out for

A brief technical and on-chain analysis on Binance Coin price. Here, FXStreet's analysts evaluate where BNB could be heading next. 

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP