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Uniswap has a bullish structure at 12 o’clock. The move above $6 suggested there may be another leg up
Uniswap [UNI] saw a nasty price drop last week after the price charts showed a bearish chart pattern and the price followed suit. With this drop, UNI went from $7 to $5.5 in five days. However, the response near the low of $5.5 was impressive.
Here is AMBCrypto’s price prediction for Uniswap [UNI] in 2022
In other news, Uniswap has announced it will raise $165 million in a Series B funding round led by Polychain Capital. On the other hand, long-term investors might also be concerned about the declining TVL over the past two months.
Uniswap Is Back Above USD 6 After Rising Wedge Breakdown
In late September, UNI made a rising wedge pattern (white) in the charts. Near the $7 resistance zone, the price saw a rejection and quickly declined below the horizontal level of $6.75. This leg down did not see a session close below USD 5.55, the lows of the pattern.
Instead, the price fell to $5.4, but quickly moved above $5.5 and again above $6. This suggested some buying pressure and strong demand around the $5.5 zone.
In yellow, a range was plotted for UNI from $5.2 to $7.2. The midpoint of this range was at $6.2 and has served as both support and resistance for the past few weeks. At the time of writing, it was a major resistance for the bulls to drive up the above prices.
The Relative Strength Index (RSI) has not yet moved above the neutral 50. However, the 12 hour market structure was bullish as the price managed to rise above the recent lower high. In addition, the $6 region has been a bullish breaker for the price. Therefore, it seemed likely that UNI could rise from $6 to $6.6.
At $6.6, there was a bearish order block from a lower time frame. It was also near the short-term key level of $6.47. So it was likely that Uniswap could form a range between $6 and $6.6.
The price has been falling since mid-August. In September and October, the $6.6-$7 region was a strong resistance region. During these months, the supply on the stock exchanges has steadily increased.
Generally, coins are moved to exchanges to sell, or for market participants to get involved in derivatives trading. Therefore, the rising supply meant that sooner or later there could be a sell-off for Uniswap. The daily number of active addresses was also not on an upward trend and has actually fallen in the past week.
The move above $6 was encouraging for the bulls, but a strong rally is not to follow. The $6.6 and $7 levels are likely to face some fierce resistance for buyers.
This post Uniswap [UNI] bounces back above $6, could capture $7 this week
was published first on https://ambcrypto.com/uniswap-uni-bounces-above-6-yet-again-can-it-conquer-7-this-week/