- Uniswap price is traversing a downward sloping parallel channel, suggesting a bullish breakout soon.
- A decisive close above the upper trend line of the technical formation at $25.24 will confirm the start of an uptrend.
- If UNI fails to hold above $17.99, it will invalidate the bullish thesis.
Uniswap price has been on a massive downtrend since September 2 but shows signs of making a U-turn as it approaches an inflection point. However, UNI needs to overcome this critical hurdle to manifest the 20% run-up.
Uniswap price ready for a move higher
Uniswap price set up three distinctive lower highs and lower lows since August 17. When these peaks are connected using trend lines, it reveals the formation of a descending parallel channel.
Coupling the overall bullish structure of the market and the technical formation’s breakout characteristics, which is also optimistic, investors can expect UNI to trend higher.
Therefore, it is crucial for Uniswap price to produce a convincing close above the $25.24 resistance barrier. Doing so will give UNI a free pass to ride the bullish wave and tag the $29.43 hurdle. This move marks a 20% ascent from the current position.
However, clearing this blockade could push Uniswap price to make a run at the next resistance level at $33.34, constituting a 38% advance.
UNI/USDT 12-hour chart
On the other hand, Uniswap price might get rejected at $25.24, leading to a downswing toward the immediate support floor at $20.62. A breakdown of this barrier will indicate that the upswing scenario is unlikely to manifest.
However, as a confirmation, market participants can wait for UNI to slice through the $17.99 demand level, which will serve as an invalidation of the bullish thesis.
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.