- Uniswap price action looks to extend its rally to seven days.
- Near-term Ichimoku support must hold, or UNI could drop more than 15%.
- Downside risks remain strong despite the recent rally.
Uniswap price has outperformed nearly every primary cryptocurrency over the past week. From February 24, 2022, to today, UNI rose nearly 44%, from $7.54 to $10.83. Bulls were able to rally UNI above the Kijun-Sen, but global concerns regarding Russia and commodity markets may cause Uniswap to give back some of those gains.
Uniswap price must hold $10.30 to prevent a return towards $9.00
Uniswap price pulled off a spectacularly bullish close but has had difficulty extending that rally. UNI is at the mercy of broader geopolitical unknowns affecting all risk-on markets and is likely to experience continued volatility. However, a support structure now exists.
UNI was able to close above the Kijun-Sen on Monday, the first time it has done that since January 16, 2022. In addition, the close on Monday had another added effect of closing above the 2022 Volume Point Of Control. The combination of breaking out above these two zones has created a substantial zone of near-term support at the $10.30 value area.
Another major rally could occur for Uniswap price if it maintains its momentum. The $12.25 level is the next price zone of importance for Uniswap price. The level at $12.25 is where the bottom of the Ichimoku Cloud (Senkou Span A) exists and the closest Ichimoku resistance level. However, the 2022 Volume Profile is extremely thin between $12.25 and 61.8% Fibonacci retracement at $16. Therefore, there is a strong probability that moving above $12.25 could generate a swift spike into the $15 to $16 price levels. However, downside risks are present.
UNI/USDT Daily Ichimoku Kinko Hyo Chart
If $10.30 fails to hold as support, then the Uniswap price will likely dip lower to test the Tenkan-Sen at $9.25. That would invalidate any near-term bullish outlook.
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