- Uniswap uptrend steadies following a key technical breakout.
- The MACD on the four-hour chart reinforces the bullish outlook.
Uniswap finally broke out of a crucial technical pattern, setting the pace for new highs. The decentralized finance (Defi) token seems to have settled above $40, allowing bulls to focus on $50. The short-term technical outlook is vividly bullish, as illustrated on the chart; thus, the slightest resistance path is upward.
Uniswap builds momentum after triangle pattern breakout
The four-hour chart shines a light on an ascending triangle pattern. Note that an ascending triangle is a technical bullish continuation pattern. It has to meet certain conditions; a trendline connecting a series of higher lows and a horizontal line (x-axis) linking the peaks. The pattern shows that bulls get stronger as the price forms a higher low pattern.
A breakout is usually anticipated at the x-axis and results in a rapid upswing. Note that the market must generally be in an uptrend for an ascending triangle to form. At the same time, the pattern will start to take shape as the market consolidates.
As the price rises gradually, buyers intensify their grip, and sellers lose traction, leading to a breakout equal to the distance between the highest and lowest triangle points.
UNI/USD four-hour chart
Consequently, Uniswap will likely hit a new high above $50, primarily if the 30% triangle target is achieved. Similarly, the uptrend has been confirmed by the Moving Average Convergence Divergence (MACD).
Equally, the MACD line (blue) cross above the signal line, Uniswap uptrend, catches momentum. A break past $50 may also trigger more gains due to the fear of missing out (FOMO), which directly impacts the level of speculation.
Looking at the other side of the fence
Uniswap must confirm the break above $40 to ensure that attention sticks to levels above $50. Otherwise, losses are likely to come into the picture as overhead pressure appreciably rises. A daily close under $40 would also trigger massive losses because investors are expected to panic sell for profit.