Published 3 hours ago
Under the influence of the inverted head and shoulder pattern, the Uniswap(UNI) pattern pierced the monthly resistance of $6. Thus, the coin buyers acquire another foothold to climb higher in the price chart. Furthermore, the technical setup for this bullish reversal pattern should encourage buyers to drive the bull rally to $8. should you enter?
Key points:
- Lower price rejection candle retest the $6 mark indicates the buyers are defending this support
- The 20-and-50-day EMA is on the verge of a bullish crossover
- The 24-hour trading volume in the Uniswap token is $121.8 Million, indicating a 6% gain.
Source-Tradingview
For nearly two months, i.e., from May 11th to July 8th, the UNI/USDT pair walked a lateral path, struggling to surpass the $6-$5.9 resistance. Furthermore, this consolidation shaped into an inverted head and shoulder pattern, providing a recovery opportunity for traders.
A recent pullback in UNI price found a stable foothold at the $4.65 mark, forming the right shoulder of the pattern. The post-correction rally surged the altcoin 40% high and breached the $6 neckline resistance.
On July 9th, the coin price showcased a decisive breakout from $6, backed by a significant pump in volume. Moreover, the altcoin currently going through a retest phase offers an entry opportunity for inverted buyers.
The long-tail attached to these retest candles, along with low volume activity indicate that the breached level is flipped into viable support. If UNI buyers sustain above this level, the accelerated buying momentum will drive the altcoin 31% high to the $8 psychological level.
Alternatively, the fallout from the $6 support would invalidate the bullish thesis and trigger another correction in UNI price.
Technical indicator
EMAs: the crucial EMAs(20, 50, 100, and 200) project two contrary signals, one with a 100-day EMA, providing viable resistance to coin price and restricting the bullish rally. While the other bullish one where the 20-and-50-day EMAs are nearing a bullish crossover.
Relative strength Index: the daily-RSI slope shows a similar rally, like price action, accentuating a genuine recovery.
- Resistance levels- $6.7, $8
- Support levels are $6 and $4.63
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
