Uniswap Price Analysis: UNI Aims for 43% Rally if Key Technical Pattern Matures

2 Min Read
Last Updated June 7th 2021
  • Uniswap bulls focus on building the momentum for the ultimate upswing past $40.
  • The profit or loss ratio reveals UNI buy zone status as more investors trickle back.
  • The network growth pattern could delay the impending uptrend.

Uniswap recently hit a stubborn barrier at $60, leading to a correction that tested support at $25. The weekend session was dominated by sideways price action as bulls focused on recovery. In the meantime, the price is teetering at $26 amid a bullish building momentum.

Uniswap resumes the uptrend ahead a major liftoff past $40

The immediate upside has been capped under the 50 Simple Moving Average (SMA) as revealed by the four-hour chart. However, the Moving Average Convergence Divergence (MACD) bullish signal has allowed investors to focus on the uptrend. For example, the trend momentum indicator has shrunk the gap to the mean line (0.00), adding credence to the bullish outlook.

Subsequently, an ascending triangle pattern is slowly approaching maturity. Note that two trend lines have been used to draw this pattern, linking higher lows and the relatively equal peaks. As the price forms the ascending trend line, bulls become more vigorous.

Eventually, they build enough volume to break through the x-axis, paving the way for a 44% upswing. The breakout target is measured from the pattern’s highest to lowest points.

UNI/USD four-hour chart

 uni/usd 12-hour chart 060721

A buy signal has been presented based on the market value realized value (MVRV) on-chain model by Santiment. This metric tracks the profit or loss ratio of holders of UNI tokens moved over the last 30 days and analyzed against the price at which each of the tokens previously moved.

The MVRV has recovered from the previous dip to -52% to the prevailing -6%. This increase reflects the uptrend from May lows around $14. Besides, it shows that Uniswap is still in a buy zone, thus attracting many investors. A move above the zero line would bolster the decentralized finance token much higher.

Uniswap MVRV ratio

Uniswap MVRV Ratio

Looking at the other side of the fence

Santiment, a leading behavioural analytics platform, shows that the number of addresses joining UNI’s protocol has sustained a dire downtrend. Note that this metric shows if the token is losing or gaining traction in terms of adoption.

Uniswap network growth

 Uniswap Network Growth

Declining network growth is a formidable bearish signal as it shows the level of interaction is going down. For instance, an average of 1,080 addresses joined the Uniswap blockchain on June 6, down from a 30-day high of 2,957. Without an upturn in this metric, UNI May continue to drop appreciably.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.