- Uniswap rises toward a potentially massive technical breakout.
- UNI’s upswing supported by weakening resistance highlighted by the transaction history.
- A correction will come into play if the ascending triangle resistance fails to give way.
Uniswap is in the bulls’ hands on Friday as we usher in the European session. In the past week, the decentralized token has purposed to sustain recovery from the freefall that almost brushed shoulders with $25. Meanwhile, UNI is closing the gap toward a potentially massive upswing, aiming for $34.
Uniswap on the Brink of a Breakout
Uniswap is exchanging hands at $29.5 at the time of writing. The bulls are focused on weakening the resistance at $30 in a bid to open the door for gains eyeing new record highs. Intriguingly, UNI is dancing at the apex of an ascending triangle. This is a continuation pattern and is generally considered bullish.
The bullish triangle is identified by the upward slope and a relatively flat top. The x-axis (flat top) highlights the number of times the asset has tried and failed to break the line’s resistance. The rising trend line makes the pattern bullish.
A breakout is expected if the price breaks above the x-axis. Uniswap may lift to $34 if the flat top hurdle resistance breaks. Ascending triangles are known to have exact breakout targets measure from the highest to lowest points, such as UNI’s 14% potential upswing.
UNI/USD Four-Hour Chart
The same four-hour chart brings to light another bullish impulse based on the Moving Average Convergence Divergence (MACD) indicator. This technical indicator follows the trend of an asset and measures the momentum. It identifies possible positions to buy the top and sell the bottom when properly used. A bullish signal is likely to be presented as the MACD line (blue) crosses above the signal line.
Simultaneously, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals the absence of massive resistance ahead of Uniswap. In other words, it is probable for bulls to sustain gains to $34. However, the model directs attention to the slight seller congestion between $30.4 and $31.3. Here, roughly 8,400 addresses had previously bought nearly 16 million UNI.
On the downside, Uniswap sits on top of a massive buyer concentration zone between $27.7 and $28.6. Here around 12,700 addresses are profiting from the approximately 300 million UNI previously bought in the range. Slicing through this would not be easy, thus validating the least resistance path north.
Uniswap IOMAP Chart
Looking at the Other Side of the Fence
It is worth mentioning that the uptrend to $34 may fail to occur if the resistance at the triangle’s x-axis and, by extension, the 100 Simple Moving Average (SMA) stays intact. Overhead pressure could start to mount, forcing Uniswap to seek refuge at $28 and $25, respectively.