Uniswap, a decentralized exchange (DEX) ecosystem, could become one of the best-performing crypto assets this week following a breakout of the reverse head-and-shoulders (H&S) pattern.

Up 15% over the past week, UNI is trading just above $6 with a fast-flowing trading volume of $219 million. Uniswap is the world’s 19th largest cryptocurrency with a market cap of $4.6 billion.

Will the Reverse Head-and-Shoulder Pattern Push Uniswap to $7.5?

Uniswap has been on an impressive uptrend since mid-June from monthly lows of $3.6 to July highs of $6,148. The trend reversal completed the formation of an inverse head-and-shoulders as bulls confirmed support at $4.8, calling for more exposure to UNI longs ahead of an expected breakout above the pattern’s neckline resistance at $5.73.

An inverted H&S pattern is a bullish signal indicating that the Uniswap market is about to switch from a downtrend to an uptrend. The pattern appears on the chart as if a person’s head and shoulders were turned upside down.

The head represents the lowest point and the shoulders are higher. The neckline is the level of resistance that connects the tops of the shoulders.

Since the Uniswap price has already validated the H&S pattern by breaking above the neckline, it confirms the pattern and traders expect a rally.

Traders are expected to buy UNI at the breakout point, $5.73 in this case, and aim for a target price equal to the head-to-neckline distance added to the breakout point, which, as observed on the chart, the Uniswap price may propel 30% to $7.50.

UNI/USD Daily Chart | Trade view

For starters, Uniswap would be in the best position to rise to $7.50 if the bulls hold the support above $6. Extremely conservative traders may want to wait for UNI to confirm the validity of this congestion zone for buyers before activating their buy orders.

In the event of a reversal, it would be prudent to wait for Uniswap price to bounce off neckline resistance at $5.73, bolstered by the 200-day exponential moving average (EMA) (in purple) at $5.665.

For now, the path of least resistance is definitely upwards, with more traders willing to bet on another buy signal from the Moving Average Convergence Divergence (MACD) indicator. Usually a bullish cross is characterized by the MACD line flipping in blue above the signal line.

The Money Flow Index (MFI) also adds credence to the bullish outlook, indicating that fund inflows into UNI markets are significantly outpacing outflow volumes. In other words, increased investor interest in the token powering one of crypto’s largest DEXs supports the projected 30% H&S breakout.

Uniswap Labs Introduces New Beta Protocol

The Uniswap development team has announced the launch of a new beta protocol called UniswapX. According to an accompanying Twitter post, this is “a new permissionless, open-source (GPL) auction-based protocol for trading between AMMs and other sources of liquidity.”

Uniswap believes this new offering will “give users more liquidity, better pricing, MEV protection and gas-free trading.” On top of all these features, UniswapX users will incur fees for failed trades, not to mention the gas-free cross-chain swap that is expected to start soon.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

This post Uniswap Price Renews Hope of 30% Breakthrough with Launch of UniswapX Beta Protocol

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