Uniswap’s price surge has attracted significant attention, with the token rallying by 32% in the past 24 hours. This increase is quite significant when compared to the previous period of stagnation that started in early July.
Currently hovering around $9.26, Uniswap (UNI) price has succeeded in retesting and breaking through the important $9.09 support line. This will no doubt be favourable for investors.
According to analysts, if UNI is able to climb past the $10.06 resistance mark, it could propel the asset towards even higher levels soon.
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UNI Golden Cross Formation Signals Potential Bullish Reversal
Among the most important factors pointing towards further growth of uniswap is the possibility of forming a golden cross. According to technical analysis, the Golden Cross is often used to predict that an uptrend is in the offing. This is a situation where a short term moving average is over the longer term moving average. It is a sign of change from bearish market to bullish market.
A Death Cross was seen on Uniswap approximately three months ago. This happened when the 50-day Exponential Moving Average (EMA) breached the 200- day EMA. Nevertheless, the last 32% of the upward movement has assisted in reducing the gap between these two moving averages.
If the 50-day EMA goes back to trade above the 200-day EMA it would form a Golden Cross. The same would suggest that the recent bear market may be over. This might increase the investor interest as the Golden Cross is believed to be a good sign that points towards future price appreciation.
Key Support and Resistance Levels in Focus
To sustain the current uptrend, Uniswap has to defend the recently retested $9.09 support level. This support level will allow Uniswap to attempt to break through the $10.06 resistance several more times since it has not been tested in almost five months.
If this resistance gets transformed into support then it could open the gates for more upward targets and strengthen the bulls for UNI.
If the price of Uniswap falls below the $9.09 support level, there is a possibility of the price retracing to around $8.23. This would probably result in a consolidation phase in which the price could stagnate before trying to climb again. A dip below $8.23 would negate the current bullish view and may mean that UNI requires more time to build up enough strength.
“Head and Shoulders” Pattern and Market Reactions
The price chart of Uniswap also depicts a “head and shoulders” chart pattern, a technical formation that is popularly viewed as bearish reversal pattern.
Should the price hold above the neckline, which is currently estimated to range between $8.00 and $8.50, then the pattern will be completed and open the doors for a breakout.
The exit from the “Head and Shoulders” pattern could put the price of Uniswap near $12, which is in the area of previous resistances. Nevertheless, traders will probably watch this pattern closely since a break below the neckline might spoil the bullish expectation.
Price Prediction and Outlook for Uniswap
As of now, almost half of Uniswap holders have a profit, so the market situation is still somewhat positive. Of the total 181,980 addresses that hold UNI tokens at an average price of $9.06. IntoTheBlock estimates that about 60 percent of them are in the green.
Such holders will most probably contribute to support the price rally through holding on their tokens.
However, some UNI holders are ‘Out of the Money’ with purchase prices higher than $9.06. If UNI gets to these levels, there could be more selling as these holders want to get out at prices near their entry points. This could lead to a short-term defensive at the higher price levels.
As Uniswap seeks to trade past $10.06, all eyes are on the token’s price action. If it manages to rise above this level, there could be more gains for UNI, with the next milestone being at $12.
