Uniswap Price Forecast: UNI Eyes Explosion to $38 While On-Chain Metrics Flip Bullish
- Uniswap is drawing closer to a 20% breakout, as observed on the four-hour chart.
- Transaction history shows UNI faces the least resistance in its upward trajectory.
- Short-term resistance at the 200 SMA must come down to validate the uptrend.
Uniswap is leading recovery despite the lethargic price action across the market. Mid-week declines embraced support at $28, allowing bulls to reclaim the mantle. In the meantime, UNI is trading slightly above $30 while dancing within a key technical pattern. If the expected breakout comes into play, Uniswap will be elevated toward $40.
Uninswap Closes in on a Potentially Massive Breakout
Uniswap is grinding nearer to a technical breakout based on the four-hour chart. An ascending triangle pattern has been formed amid the prevailing sideways trend. This is a bullish continuation pattern that mainly occurs after a significant uptrend.
A breakout occurs once the price slices through the horizontal trend line. It signifies the beginning of a significant upswing. An increase in trading volume validates the breakout whose target is measured from the highest to the lowest point of the pattern. For instance, Uniswap may spike by nearly 20% to hit highs around $38.
UNI/USD Four-Hour Chart
The bullish narrative appears to be validated by In/Out of the Money Around Price (IOMAP) model by IntoTheBlock. This on-chain metric tracks the transaction history of a digital asset and groups the purchases and the addresses in ranges, identifying resistance and support levels.
Currently, the IOMAP reveals that Uniswap faces minor resistance in its recovery journey. The only zone traders should pay attention to runs from $30.4 to 31.1. Here, nearly 11,800 addresses previously bought around 32 million UNI. A break above this zone could bolster Uniswap toward $38.
On the downside, immense support has been established to ensure that market stability is almost guaranteed. The most robust buyer congestion zone runs from $27.6 to $28.6. Here, roughly 13,300 addresses previously purchased approximately 260.7 million UNI. Trading under this zone would not be easy; hence the least resistance path is downward.
Uniswap IOMAP Model
It is worth mentioning that Uniswap must close the day above the 200 Simple Moving Average on the four-hour chart for the uptrend to be validated. This will ensure that a breakout is given a chance at the x-axis. Otherwise, a correction may come into the picture and jeopardize the support at $28.