There are 2 quite probable situations to operate in the short and medium term.
In the last 24 hours, a vast majority of cryptocurrencies have been in an uptrend following Bitcoin’s recovery above $21,000. However, Uniswap (UNI) has stood out among the altcoins for having recorded considerable gains, and if its technical picture is analyzed, there was a bullish momentum pattern for several days.
The price of UNI at this moment is exactly US$7.30 and registers a gain in the last 24 hours of 4.95%. It also accumulates gains in the last 7 days, being exactly 11.48%, according to data from CoinMarketcap.
Bottom Line: Will the Bull Run Continue?
In Uniswap technical analysis, the fundamental situation should also be assessed. And first of all, there is a recent development of great importance, and that is, that the Robinhood cryptocurrency exchange will add support for Uniswap. Therefore, it could be said that the rise of the native token, UNI, is supported.
On the other hand, as mentioned in KEY ALERTS, it is worth keeping an eye on the new hike by the FED that will take place for the second consecutive month, and that will probably be 75 basis points. This is because politicians opposed a larger measure.
Even though everyone is already bracing for a possible shake-up, this brought reassurance even to the crypto market and UNI traders. Because rumors that the hike in July would be 100 basis points were generating panic, this can be considered a relief.
Technical Analysis of Uniswap in Daily Timeframe
The first thing that can be seen is an inverted HCH pattern that warned of the rise. Additionally, there were consecutive rejections during the rise; two in the support zone at $3.53 and two more with the central EMA of ENVs.
It should be noted that the Bull Run supported by the news of Robinhood could mean a return to the resistance zone located at US$ 8.17. However, if a bit pessimistic interpretation of the market and the new FED hike is assumed, the bullish wedge formation can be seen, similar to what happened during March, when UNI prices were knocked down.
This leads us to consider that there may be a new crash in UNI, as happened the previous time. It is quite likely that this drop will be more than 40% based on historical data.
Therefore, it is worth paying attention to the breakout of this channel and the support zone located at US$4.65, especially since the RSI is at overbought levels, exactly 68 points. Also, the MACD histogram shows weakness in the trend.
It’s important to keep an eye on both sides of the picture, as it could deliver huge profits if investors trade futures, and take a close look at the context.
By Audy Castaneda
