Uniswap’s price looks to march forward after forming a triple bottom pattern on the lesser timeframe. An additional 15% surge was expected provided the price recovers above a crucial resistance mark. At the time of writing, UNI traded at $18.44, down by 2% over the last 24 hours.
Uniswap 4-hour time frame
Uniswap has surged by 13% over the last three days after forming a triple bottom pattern at $16.73. The pattern is formed after a support line is tested thrice within a brief period. A third retest indicates that a solid defense is in place, eventually leading to a bullish resurgence.
As more longs are initiated, UNI would look to challenge swing highs at $19.5 and $20.1. However, for an extended rally, it is imperative for UNI to close above $20.1 on strong volumes. Based on UNI’s movement since May 2021, its price travels through the liquidity pocket between $20.1 to $23.1 at a relatively faster pace. Should its price falter at this immediate resistance, expect UNI to consolidate between $18.4-$16.3.
Unfortunately for UNI, buy volumes have not been consistent. In fact, the OBV has been forming lower highs since late December – a sign that selling pressure was still dominant in the market.
Indicators
The Relative Strength Index was challenging its mid-line but presented a bullish tone after recording two higher peaks. Should its current trend continue, the RSI would advance to the overbought territory and form yet another higher high.
On the other hand, the MACD opposed such readings. The index was close to a bearish crossover and a move below the half-line would invite short-selling.
Conclusion
Although Uniswap can register another 9% hike on the back of a triple bottom breakout, a close above $20.1 was unlikely. Strong buy volumes have been absent and UNI’s MACD and RSI were not in agreement. The OBV’s trajectory even undermined UNI’s current breakout. Hence, a safer call would be long UNI only when it closes above its immediate challenge at $20.1 on high trading volumes.