Uniswap’s UNI price may rally above $6 soon – here’s why.

Uniswap's UNI price may rally above $6 soon - here's why.

Uniswap’s UNI: A Promising Future in the Blockchain Industry

Uniswap’s native token, UNI, has recently experienced a surge in value against the US Dollar, indicating a potential bullish trend in the near term. As blockchain technology continues to evolve and gain widespread adoption, Uniswap’s UNI stands out as a promising player in the blockchain industry.

Uniswap’s UNI Regains Traction

After forming a support base above $5.00, UNI started a fresh increase. This upward movement was driven by the bulls, pushing Uniswap’s price above the $5.25 and $5.30 resistance levels, mirroring the success of leading cryptocurrencies like Bitcoin and Ethereum.

One notable development was the break above a major contracting triangle with resistance near $5.35 on the 4-hour chart of the UNI/USD pair. This breakout provided the necessary momentum for the pair to test the $6.30 zone, reaching a high of $6.291 before starting a downside correction.

Uniswap UNI Chart

Source: UNIUSD on TradingView.com

Despite the correction, UNI’s price remains above $5.50 and the 100 simple moving average (4 hours). However, there are still hurdles to overcome at $6.00 and $6.10. A close above $6.10 would open doors for further gains, potentially leading to a test of the $6.30 resistance level. If the bullish momentum persists, UNI may even reach $6.80, with the possibility of further gains towards $7.00.

Dips Supported?

While the recent surge in UNI’s price is promising, there is still a possibility of a correction if the price fails to climb above $6.00 or $6.20. In such a scenario, the first major support level lies near $5.70, followed by the $5.50 level.

The $5.50 support level aligns closely with the 61.8% Fibonacci retracement level of the upward move from the $5.09 low to the $6.291 high. A downside break below this support level could open doors for a push towards the key support at $5.10.

Technical Indicators

To gain further insights into UNI’s price movement, let’s analyze the technical indicators:

  • 4-Hours MACD: The Moving Average Convergence Divergence (MACD) for UNI/USD is currently gaining momentum in the bullish zone, indicating a potential continuation of the upward trend.
  • 4-Hours RSI: The Relative Strength Index (RSI) for UNI/USD is well above the 50 level, further supporting the bullish sentiment.

Summary

Uniswap’s UNI has regained traction in the blockchain industry, with its recent price surge signaling a promising future. While facing resistance at $6.00 and $6.10, a breakthrough could lead to further gains, potentially reaching $6.30 and even $6.80. However, if the price fails to climb higher, support levels at $5.70 and $5.50 are crucial for maintaining a bullish outlook. As blockchain technology continues to evolve and mature, Uniswap’s UNI stands as a strong contender in the blockchain industry, with the potential for further growth and adoption.

Key Points:

  • UNI started a fresh increase after forming a base above $4.75.
  • The price is trading above $5.65 and the 100 simple moving average (4 hours).
  • A break above a major contracting triangle with resistance near $5.35 was observed.
  • UNI’s price faces hurdles at $6.00 and $6.10, while support levels are at $5.70 and $5.50.
  • Technical indicators suggest a bullish momentum with MACD and RSI gaining strength.
  • UNI’s promising future in the blockchain industry makes it an attractive investment opportunity.