Facing a rejection in August, the UNI token price failed to surpass the $6.680 mark, resulting in a huge pullback. Falling to the bottom levels of $4, the more than 40% pullback led to a medium-term consolidation range.
Trading between the $4 and $4.90 levels, the consolidation range coiled up too much trend momentum. With the market recovery igniting a bullish spark in Uniswap, the buyers cracked the consolidation range, leading to a bullish break.
Source – Tradingview
Moreover, the breakout rally exceeds the 50D and 200D EMA with a boom in the intraday trading volume. The breakout rally marks a strong bullish comeback in the UNI price trend as it reclaims the $6 mark, with a 56% jump within five weeks.
Currently, the UNI price trades at $6.20 with an intraday fall of 1.32%, teasing a short reversal. Further, the Uniswap trend displays a rounding bottom pattern in the daily chart.
The ongoing struggle to prolong the uptrend is because of the excessive supply at the neckline of the rounding bottom. Anyhow, a bullish breakout of this trend continuation pattern will fuel the uptrend in the Uniswap price chart.
Technical Indicators:
RSI indicator: The RSI line displays a bearish divergence in the past two peaks, leading to a small pullback. Nevertheless, the momentum indicator stays close to the overbought boundary, reflecting a significant underlying demand.
EMA: The 50D and 200D meet and tease a golden crossover to certify a trend reversal in Uniswap prices.
Will The UNI Price Get A Bullish Break?
The UNI price can skyrocket and fracture the overhead neckline because the market conditions improve in a few days. Getting a bullish breakout, the unleashed trend momentum can retest the $8 mark, accounting for a 27% hike.
Conversely, if the price drops under $6, then a retest of $5.73 is possible.
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