Uniswap has been plummeting with the overall crypto market as bears continually repress attempts by bulls to turn the wheel in their favor. Meanwhile, the latest buyer efforts had the token on the sideways track, following market consolidation within the past few days.
In meeting the selling momentum, UNI buyers would eye a break beyond the prevailing pattern. A closing beyond the POC (Point of Control) might open the path for a $5.7 retest. While publishing this blog, UNI changed hands near $4.86.
Uniswap Daily Timeframe
Uniswap’s long-term trend-line support has historically triggered near-term recoveries. Therefore, the latest rebound from the mark rearranged itself into a double-bottom setup on UNI’s daily chart. Meanwhile, the altcoin’s swift declines witnessed a plateau around the Point of Control at the $5 mark.
Hence, the rectangle bottom or side channel has curtailed the latest volatility. Moreover, buyers ensured recoveries beyond the Bollinger Bands’ basis line after the token slumped to 18-month lows.
Nevertheless, Uniswap presented an optimistic flag-like pattern on the chart. Any possible closing beyond the setup might support short-term recovery efforts, pushing the token towards the channel’s topside trend-line.
Such cases would have a target of $5.73. Meanwhile, the possibility of buyers maintaining the sideways channel might delay the projected near-term recoveries following a $4.4 retest.
Reasoning
The RSI (Relative Strength Index could not keep its spot beyond the midline as it headed into neutrality. The index should record improved readings to regain its bullish stance considering its weak biases.
However, the Chaikin Money Flow confirmed a bullish case and flashed a significant surge in cash volumes within the cryptocurrency market. Nevertheless, possible revivals on its highs might confirm bearish divergences with UNI prices.
Final Thought
UNI hovered in a tricky region. A close beyond the pattern might catalyze a near-term rally. That’s why buyers should wait for closings beyond the Point of Control. However, bullish invalidations might delay this revival.
The price targets would stay as highlighted above. Lastly, Uniswap boasts a 17% monthly correlation with BTC. So, enthusiasts should watch Bitcoin’s movements to ensure informed decisions.
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