- Uniswap commences the breakout above an ascending triangle.
- Short-term technical levels align for the ultimate upswing.
- Overhead pressure at $44 could delay or sabotage the uptrend.
Uniswap finally cracked the stubborn hurdle at $40. The uplift occurred in the wake of a flash drop to areas around $30. At the time of writing, the decentralized finance (Defi) token teeters at $42 amid the persistent push by the bulls to close the gap heading to $50.
Uniswap breaks ascending triangle resistance
The four-hour chart brings to light an ascending triangle. This technical pattern forms during an uptrend and signifies the continuation of the previous trend. A couple of trend lines mold the pattern, connecting the relatively equal peaks and the ascending lows.
As the trend lines converge, a breakout occurs, marking the beginning of the uptrend. Triangles are known to have precise breakout points, measured from the highest to the lowest points. As for Uniswap, the price action targeting $51 has already begun. Therefore, a step above the short-term seller congestion at $44 may trigger massive gains.
UNI/USD four-hour chart
The Moving Average Convergence Divergence has reinforced the bullish technical outlook on the four-hour chart. Its recent lift from the negative region encouraged investors to leave the sidelines and join the market to anticipate a breakout above $50. Besides, the MACD line has sustained the signal lines divergence, insinuating that the trend is comfortably in the bulls’ hands.
IntoTheBlock’s IOMAP model reveals that Uniswap is in a price discovery mode. This means that nearly all the wallets are in profit and no defined resistance exists to hinder the uptrend.
Numerous support zones are in line to prevent Uniswap from incurring losses on the downside. The model directs our attention to the area running from $37.5 to 38.8. Here, around 1,300 addresses previously scooped up nearly 3 million UNI.
Uniswap IOMAP model
It is worth keeping in mind the resistance at $44 (an all-time high). If bulls cannot break through this zone, overhead pressure will soar. On the downside, price action under $40 would wipe the progress made over the last week. All Uniswap holders are at a profit; therefore, they may decide to sell before reentering the market at a lower price.