- Uniswap price breaks out of the 35-day consolidation price zone, signaling a potential upward move.
- On-chain data shows tokens from dormant wallets are moving again.
- A daily candlestick close below $6.76 invalidates the bullish thesis.
Uniswap (UNI) price has broken out of a 35-day consolidation this week, a sign of a possible rally ahead that could increase the token’s price around 30%. Technical indicators support the bullish thesis, while on-chain data also aligns with it.
Uniswap price looks set to reclaim highs
Uniswap price broke the $6.76 to $8.20 consolidation after a 20% rally on May 22. This move also allowed UNI to establish itself above the 200-day Exponential Moving Average (EMA), currently hovering at $8.07. Typically, massive moves tend to revert to the mean, which provides an opportunity for sidelined buyers to accumulate.
There are three levels to buy UNI dip.
- A retest of the 200-day EMA at $8.07, roughly 13% lower than the current price of $9.40.
- The daily order block, extending from $7.53 to $7.97, coincides with the 200-day EMA and is the second level to buy UNI.
- Investors can also consider securing UNI if it retests the upper limit of the aforementioned range at $8.20.
Assuming Uniswap price bounces from the $8.20 level, the conservative target is $10.61, which is roughly 30% away. Beyond this, UNI could also retest $12.80 in case of an extremely bullish outlook. This move would constitute a 60% gain. The second target is ambitious and is only likely to occur if the market condition is extremely bullish.
Supporting this bullish thesis, the Relative Strength Index (RSI) and the Awesome Oscillator (AO), both of which, have breached their mean levels of 50 and 0, indicating that the bulls are in control.
UNI/USDT 1-day chart
Santiment’s Age Consumed index is in line with the bullish outlook noted from a technical perspective. The spikes in this index suggest dormant tokens (tokens stored in wallets for a long time) are in motion and can be used to spot short-term local tops or bottoms.
For UNI, history shows that the spikes were followed by a rally in Uniswap price. The most recent uptick on April 25 also forecasted that UNI was ready for an uptrend.
%20[14.20.56,%2024%20May,%202024]-638521498940018919.png)
UNI Age Consumed chart
Regardless of promising technical analysis and on-chain data, if the daily candlestick closes below the $6.76 price level, a lower low would be formed. This scenario would flip the bullish market structure to bearish, which could cause the UNI price to crash 13% to $5.89.
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.
Recommended Content
Editors’ Picks
Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000
Bitcoin (BTC), the largest asset by market capitalization, has noted a decline in its active address count per data from Glassnode. A decline in active addresses is typical at a time during a surge in Bitcoin transaction fees.
SEC vs. Ripple lawsuit update: Regulator responds to letter regarding Terraform Labs judgment
Securities and Exchange Commission (SEC) responded to Ripple’s letter that quotes the reasons for the settlement amount being unreasonable. The payment firm had proposed a fine of $10 million, as opposed to the SEC’s $2 billion.
Gemini Earn creditors could recover their funds in coin as New York Attorney General recovers $50 million
Gemini exchange had terminated its Earn program after Genesis Global Capital did not return over $900 million in assets that it owed to the platform. New York Attorney General Letitia James’ office has recovered a total of $2.05 billion from the platform.
Here’s what you need to know about LayerZero ZRO token airdrop
LayerZero Labs CEO Bryan Pellegrino released details of the upcoming ZRO token airdrop in a recent tweet. ZRO total supply is 1 billion of which 23.8% will be directly allocated to the community and builders. LayerZero announced June 20 as a key date, it remains unclear whether this is the airdrop or entitlement date.
Bitcoin: Has BTC found a local price bottom?
Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.