Uniswap analysis – The price of UNI is encouraging
4 min readUniswap has bounced back since the sharp sell-off on June 10, up 66 percent to currently 6.04 USD to the north. After the UNI price was able to regain the red downward trend line at the beginning of the month, a breakout above the average line of the last 200 days (EMA200) (blue) followed in the last few trading days. This liberation has brightened the chart of the in-house stock token of the world’s largest decentralized crypto exchange. One possible reason is that Development of Uniswap version 4. The significant increase in trading volume on the leading DEX also seems to be bearing fruit. Although a new crypto law in the USA could mean additional headwind for projects in the field of decentralized finance, the declaration of war by US politicians does not seem to have a negative impact on Uniswap’s price development so far.
As assumed in the last price analysis from June 13th, after the sell-off in the previous month, the sell-off seems to have stopped for the time being. If the buyer side succeeds in stabilizing the price above the cross support from EMA200 and horizontal support in the orange zone, a further price increase in the direction of the golden pocket at 6.61 US dollars is to be planned. As long as Uniswap doesn’t break below the Supertrend and red downtrendline support at 5.03 USD, the buy side will hold the reins for now.
Uniswap: Bullish price targets
Bullish price targets: 6.48 USD/6.67 USD, 7.38 USD/7.65 USD, 8.20 USD, 8.99 USD/9.28 USD, 9.82 USD, 11.00 USD, 12.20 USD/13.01 USD.
In the last 24 hours of trading, UNI is up 3.4 percentage points, bringing the weekly gain to 13.8 percent. Now, if Uniswap stabilizes above the orange support zone, the upside is likely to extend towards the 6.48-6.67 USD yellow resistance area. A short-term directional decision can be expected in the Golden Pocket area. This zone acted as a strong price hurdle several times in March and April. Only when Uniswap recaptures this chart area at the daily closing price should the buyer side target the high for the year between USD 7.38 and USD 7.65.
Here, increased profit-taking is to be expected in the first attempt. Should this strong resistance area also be pulverized in the medium term, the probability of a subsequent rise back above the intermediate station at 8.19 USD towards the summer highs of 2022 between 8.99 and 9.28 USD increases noticeably. If the bulls succeed in jumping above this resist area and the high of July 28, 2022 at 9.82 USD is also recaptured, the path towards 11.00 USD would be clear.
Then the trailing edge between 12.20 and 13.01 USD would be within reach again. The 127 Fibonacci Extension also runs here. Given the relevance of this chart area, this zone represents the maximum price target for the coming months.
Bearish price targets for the coming trading weeks
Bearish price targets: 5.82 USD/5.63 USD 5.20 USD/5.03 USD, 4.80 USD, 4.47 USD, 4.04 USD, 3.63 USD, 3.35 USD, 2.95, USD
The bears had to let the buyer side have their way last. Only a relapse below the EMA200 could initiate a new course consolidation. Then there should be a directional decision in the area of the turquoise zone. The supertrend paired with the always relevant chart technical area between 5.20 US dollars and 5.03 US dollars represents an important support. The buyer side should already counteract this more clearly in order to avert a fall below the downward trend line.
However, if this area is permanently undercut, the chart picture will cloud over again in favor of the seller camp. If Uniswap then breaks the horizontal support at 4.80 USD, further downside potential towards $4.47 will be activated. If this support level also fails, a retest of the horizontal support at 4.04 USD should be planned. This mark was defended several times on a daily basis in June.
If, contrary to expectations, the UNI price does not stabilize here, a retest of the previous month’s low of USD 3.64 is likely. The buy side needs to be there and defend this level on an end of day basis to form a double bottom. However, if this important support level is abandoned, the focus will be on the previous year’s low of 3.35 USD as the maximum price target on the downside.
Looking at the indicators
The RSI as well as the MACD indicator show stable buy signals in the daily chart, but appear overbought in the short term. In addition, the 4-hour chart shows bearish divergences for both indicators. Therefore, a consistency test of the orange support area must be scheduled at any time.
On a weekly basis, the RSI is about to form a fresh buy-signal at 54. A jump from the neutral zone to the north would develop further price potential from a general perspective. The MACD has also activated a slight long signal, but is trading well below its 0 line.
