Will the launch of Uniswap Wallet lead to a price cut for UNI?
UNI's price has risen sharply since falling to a low of $3.80 in October.
The price is close to reaching the long-term downtrend resistance line this week. Does it hatch?
Uniswap (UNI) Bounces, Saves Fractures.
UNI's price has traded above the $4 horizontal support zone since April 2022. During this period, it also fell below the descending resistance trend line. More recently, the trend line rejected in July 2023 (red icon) which led to a downward movement.
The decline took UNI to the $4 horizontal support area in October, initiating a rally in UNI's price that has continued.
The altcoin reached a high of $5.60 this week, just below the downward resistance trend line at $5.90.
Read more: 9 Best AI Crypto Trading Bots To maximize your profit
The descending resistance trend line has been in place for 475 days. Combined with around $4, it forms a descending triangle, considered a bearish pattern for UNI price.
On Wednesday, the Uniswap team announced the launch of the Uniswap wallet on Android. The team announced that at 10:00 AM EST, Uniswap will hold a keynote on Android to discuss new wallet features, languages, and more.
Read more: 9 Best Crypto Indicator Accounts for Trading
What are the analysts saying?
Cryptocurrency traders on X (formerly Twitter) are primarily bullish on the future price trend of UNI.
DaveCryptosNews tweeted that the price action is aggressive, and there is strong support around $4.60.
GlobeOfcrypto1 noted a potential reversal from a long-term pattern, which could result in an upward move.
CryptoUsmaan offers two options for entering a long trade:
“UNI is on the wane. We have significant support at $4.85 (200 Daily MA). If the price comes to this area we can look for some long trade. Or we can look for a long trade if the price breaks out of the trend line. Watch it.”
UNI Price Prediction: Can the price reach $10?
A closer look at the weekly chart shows that UNI may have broken the long-term downtrend resistance line (white) that has been in place since the all-time high. If so, the price is currently confirming as support.
Another interesting development comes from the weekly Relative Strength Index (RSI).
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to stock or sell the asset.
A reading above 50 and an upward trend indicates that bulls still have an advantage, while readings below 50 indicate the opposite.
Read more: Best 9 Telegram Channels for Crypto Signals In the year 2023
RSI is moving up and crossed above 50. More importantly, it formed a bullish divergence (green line) on the most recent bounce.
A difference in strength occurs when an increase in speed is accompanied by a decrease in value. A bullish trend reversal usually precedes.
If the altcoin breaks out of the bearish resistance trend line, it could rise by 40% to the $7.50 resistance area and possibly 130% to the $12 resistance.
Despite this high UNI price forecast, the failure to break out of the short-term bearish resistance trend line could result in a 25% decline to the $4 support area.
Click here for BeInCrypto's latest crypto market analysis.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
