- Uniswap price has emerged from a descending channel.
- The bullish hammer on the 4-hour chart confirms that a corrective low is in place.
- The successful retest of the March 11 low establishes a potential double-bottom pattern.
Uniswap price is currently set to close with its fifth consecutive positive month. The breakout into new highs on March 8 failed to stick, and the price had been falling in a descending channel until March 11.
Uniswap price 21% surge awaits double-bottom breakout
From the November 2020 low to the March high UNI gained almost 1,900%, solidifying it as one of the best performing cryptocurrencies over the last four months. The price action following the all-time high at $35 was corrective and resulted in just a 16% pullback.
The breakout from the descending triangle on March 11, combined with the successful retest of the correction low at $29.50, has raised the odds that UNI is readying to continue the fantastic advance and firmly close March with its fifth consecutive positive month.
To confirm a new rally, Uniswap price needs to trade above $32 to trigger the small double-bottom on the 4-hour chart below. The first significant resistance level is the 1.382 extension level at $38.70, which equates to a 21% gain from the double-bottom trigger price.
If the price continues to accelerate, it could easily reach the key 1.618 Fibonacci extension at $42.
UNI/USD 4-hour chart
To stay true to the handbook of trading with discipline it is important to clearly define support levels. The immediate downside price targets to watch are $29.20 and the hammer formation’s low, and the channel’s lower trendline at $27.
But the .50 retracement level at $26.50 will determine whether Uniswap price is entering a deeper correction phase. Note, the .50 retracement level runs through a lot of price congestion going back to February 24.
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.