- Uniswap price releasing compression to the upside after two inside weeks.
- Biggest decentralized exchange (DEX) in the world added to Revolut’s banking app.
- Topside trendline is first target for the unfolding rally.
Uniswap price over the past two weeks closed with inside weeks, signaling a balance between buyers and sellers. The resulting price compression has been released to the upside, carrying UNI into new highs. It is just the beginning of the rally that should take the digital asset to the topside trend line, representing a 50% gain from the current price.
Uniswap price strength needs to capture greater volume support
Today’s Intotheblock In/Out of the Money Around Price (IOMAP) data captures exceptional support between $35.35 to $34.50, where over 2.06k addresses purchased 6.89 million UNI tokens. It suggests that any weakness post-breakout moving forward should be quickly contained.
UNI IOMAP chart
Like XTZ and Filecoin recently, UNI is confronted with resistance created by a topside trendline. Suppose the altcoin breaks above the trend line. In that case, it will depend mainly on the velocity of the move and, to a lesser extent, on the price action of Ethereum, the ecosystem that Uniswap protocol is hosted.
Some resistance may emerge at the 161.8% Fibonacci extension of the late March sell-off at $46.14, but the formidable resistance rests at $55.88, the topside trendline. A quick liquidation of the trend line releases UNI to test the 261.8% extension at $66.44.
UNI/USD weekly chart
The 10-week simple moving average (SMA) is a critically important support for any pullback. It currently sits at $29.71, slightly above this week’s low of $29.53. If the moving average fails, speculators need to monitor the 38.2% retracement of the 2020-2021 rally at $23.47, a loss of around $40 from today’s price.
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