Crypto News- Since April 2022, UNI has stood firm above the $4 support, weathering the storm of a descending resistance trend line. A notable setback occurred in July 2023 (marked by a red icon) when the trend line triggered a downturn. However, October saw a bounce back to the $4 support, signaling a recovery.
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This week, UNI experienced a surge, reaching $5.60, just shy of the $5.90 descending resistance trend line persisting for 475 days. The combination of this trend line and the $4 support forms a descending triangle, traditionally a bearish pattern for UNI. The recent announcement of the Uniswap wallet’s Android launch sparked interest and provided a positive backdrop.
Analysts on X (formerly Twitter) express a predominantly bullish sentiment. DaveCryptosNews notes strong support around $4.60, while GlobeOfcrypto1 envisions a potential breakout from a long-term pattern, hinting at a significant upward movement. CryptoUsmaan presents two trade possibilities, emphasizing an impending breakout.
Looking at the weekly chart, there are indications that UNI might have broken free from a long-standing descending resistance trend line, now being tested as support. The weekly Relative Strength Index (RSI) adds another layer of intrigue. As the RSI trends upward, recently crossing the 50 mark, a bullish divergence (green line) accompanies the latest bounce.
A bullish divergence, where momentum increases despite a price decrease, often heralds a bullish reversal. If UNI successfully breaks the descending resistance trend line, a 40% surge to the $7.50 resistance and potentially a 130% rally to the $12 resistance could unfold. Despite this optimistic outlook, a failure to breach the shorter-term descending resistance trend line may trigger a 25% dip to the $4 support area.
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