Uniswap Price Forecast: UNI prepares for 38% move amid strengthening technical levels
- Uniswap price eyes a 38% breakout if the double-bottom pattern breakout confirms.
- Massive support illustrated by the IOMAP on-chain metric suggests that the path of least resistance is upward.
Uniswap has not been left behind by the bullish wave sweeping across the cryptocurrency market Monday. The decentralized finance (Defi) is up nearly 8% to trade very to $20. As Bitcoin closed the gap to $40,000 following news that Amazon was planning to accept as a mode of payment, the rest of the market exploded.
Key technical formations in Uniswap’s short timeframes appear to be confirming a lengthy uptrend in the upcoming sessions. On-chain metrics are also aligning in support of the uptrend. Hence, UNI’s path with minor hurdles could remain upward in the short term.
Uniswap Price Draws Closer To A Massive Breakout
The 12-hour chart shines a light on a double-bottom pattern that recently came into the picture after a massive price drop last week. The support at $14 has come in handy toward the end of June, stopping losses from gaining traction to $10. This same support ensures that last week’s selloff was mitigated, giving way to a technical breakout.
Double-bottom patterns are highly bullish and often result in massive breakouts. Therefore, if support the 50 Simple Moving Average (SMA) holds, Uniswap will hit highs above $20 before stretching the bullish leg above $30.
Meanwhile, a 12-hour close is required above the 100 SMA in the same 12-hour timeframe to validate the upswing. The double-bottom pattern will confirm as the price overcomes the resistance at $22.5. Here, bulls will work on a 38% uplift to $32.
UNI/USD 12-hour chart chart
A buy signal by the Moving Average Convergence Divergence (MACD) shows that buyers are entirely in control. As this trend follows UNI’s trend, it calculates the momentum in sending signals to buy or sell the token. With the 12-day EMA crossing above the 26-day EMA, investors streamed into the market, adding credence to the bullish narrative. Additionally, the MACD settling above the mean line will add weight to the anticipated upswing.
The In/Out of the Money Around Price (IOMAP) by IntoTheBlock brings into the picture massive support running from $19 to $1.6. Here, around 4,200 addresses previously bought 135 million UNI. This is the most robust support zone with the potential to absorb selling pressure and bolstering Uniswap above $20 and toward $30.
Uniswap IOMAP chart
On the upside, the absence of massive resistance zones means that Uniswap has a smooth path toward $30. The IOMAP highlights a minor hurdle between $22 and $22.6. If cleared, we expected a rally to spike for gains aiming for $30.