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Uniswap price congestion below Ichimoku cloud could set up UNIU breakout to $45

  • Uniswap price consolidation below the Cloud continues but hints at higher moves soon.
  • Short-sellers are likely to get squeezed on a move above the Cloud.
  • Downside risks remain despite new bullish momentum. 

Uniswap price has spent the past 17 days trading below the Cloud. However, no solid follow-through to cause a capitulation move has occurred. This could be a warning sign to any short-sellers that a bear-trap may be developing.

Uniswap price will spike to $45 if it can break near-term resistance

Uniswap price has two cluster of resistances it must break before converting into a full-blown bull market. The first resistance cluster is Kijun-Sen and Senkou Span B, between $23.00 and $23.50.This is the most challenging resistance cluster to cross due to Senkou Span B. Senkou Span B represents the most substantial support/resistance level within the Ichimoku system. Closing above Senkou Span B would be a powerful signal to market participants that sentiment quickly shifts to the buy-side. Additionally, it will likely mean an easier time for Uniswap price to crack above the second resistance cluster.  The second resistance cluster is the 38.2% Fibonacci retracement and top of the Cloud (Senkou Span A) between $25.00 and $25.60. Therefore, Uniswap price needs to close at or above $26.25 to fulfill all Ideal Bullish Ichimoku Breakout requirements. If the break-out is confirmed, Uniswap should have a relatively easy time pushing higher towards $45.

Chart

UNI/USDT Daily Ichimoku Chart

However, downside risks remain. Uniswap price is extremely bearish with the close below the Cloud and the Chikou Span below the Cloud. Any drop below the $17.75 value could trigger a flash crash to the prior 100% Fibonacci expansion at $12.45.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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