Uniswap bulls resurged around the 16-month trend-line support after a 3-week descending channel suppression. The dedication to conquering the selling momentum would see UNI targeting EMA ribbons retest. A closing beyond the POC (Point of Control) would significantly enhance the breakout chances towards $10. While writing these lines, UNI traded at $9.64, gaining 2.74% over the past day.
Uniswap Daily Chart
Uniswap’s long-term trend-line foothold has historically supported near-term recoveries. Therefore, the previous month had buyers building momentum around the Point of Control. After the EMA ribbons bearish phase that extended more than four months, bulls constrict the ribbons gap as they contemplate a bullish overturn. Moreover, the sturdy $9 matching the trend-line support would encourage bulls in the coming days.
Though an upward move from this region should not surprise traders, buyers required some intense actions for surged volumes to regain their regime past the EMA ribbons bound. Possible recoveries might dip into consolidation as the ribbons gap lessens. Nonetheless, the overall sentiment would be crucial for UNI’s future trajectory.
Reasoning
The Relative Strength Index steadies within the 38-46 level within the past two weeks. Meanwhile, bulls needed to extend the current resurgence past the midline to confirm a decisive flip of the prevailing momentum.
Meanwhile, the on-balance volume displayed possible bearish divergence with Uniswap price on its daily scale. The narrative emerged as the OBV kept higher highs over the past 13 days. Reversals from the oscillator’s resistance may translate to UNI delayed recovery.
Final Thought
Considering Uniswap’s past reactions, the alt displayed the potential to climb towards the value range of $10 – $11 in the coming days. The on-balance threat may delay this projection as the token dips into a potential squeeze phase.
Furthermore, UNI boasts a 94% monthly correlation with BTC. Enthusiasts should watch Bitcoins bias to ensure profitable undertaking while interacting with Uniswap. The world’s dominant crypto traded at $41,824 at this publication, surging 1.12% over the previous day. Maintaining the uptrends past $42,000 would trigger near-term surges in the altcoin market. Such developments would support UNI’s upward journey.
