• Uniswap price develops a rare and powerful buying opportunity.
  • Massive bullish expansion moves up ahead.
  • Downside risks are limited to the near term and are easily invalidated.
Uniswap price action is setting up short-sellers for one nasty bear trap. Despite the presence of a possible triple-bottom breakout, a move lower would only further enhance the bullish reversal that is coming up.

Uniswap prepped for a 170% move higher

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. In the case of Uniswap, these requirements are only valid as long as the 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 to set a buy stop order at $24, a stop loss at $16, and a profit target at $58. This 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 if it reaches $10 before the entry is triggered, the trade idea is invalidated. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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