In the latest newsletter from Rekt Capital, the crypto analyst provides insights on the recent price actions of UNI and AVAX.
For UniSwap (UNI/USDT), the analyst notes that UNI has experienced a robust rally after successfully retesting the critical support level at $7.21. This level has held firm, allowing the price to now hover near a potential breakout from its established range.
However, the analyst emphasizes that confirmation of this breakout hinges on UNI closing above the resistance at $8.36. A successful Monthly Close above this level, followed by a retest as support, would set the stage for a more significant price movement towards the higher targets indicated.
The analyst also examines the Weekly timeframe, revealing that UNI is currently forming a Downtrending Channel. Should UNI close above the blue diagonal resistance, it may not have to wait for the Monthly Close to achieve a breakout.
As it stands, UNI remains below this resistance, and without a bullish Weekly Close, the likelihood of a rejection increases. In such a scenario, consolidation within the current range is expected, creating opportunities for buyers during any downside wicks below the Range Low.
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Avalanche (AVAX) Price Could Continue to Consolidate
Turning to Avalanche (AVAX/USDT), the analyst highlights that AVAX has been effectively retesting its Macro Downtrend as support over recent months. This pattern of downside wicking under the Downtrend has been consistent, suggesting that AVAX is now primed for a new Macro Uptrend after affirming the Downtrend as support.
The analyst draws parallels between AVAX and DOGE, noting that both assets have historically retested their Macro Downtrends before experiencing significant rallies.
While DOGE has emerged as a leader in this respect, the analyst suggests that AVAX, as a laggard, is likely to follow suit. The expectation is that AVAX will eventually rally to revisit early 2024 highs, mirroring DOGE’s previous price movements.
Overall, the insights provided by the analyst underscore the importance of key price levels and trends in determining the future trajectories of UNI and AVAX in the current market landscape.
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