Uni blinks early signs of a bullish reversal, with a potential inverted head and shoulders that are formed on the daily map.
According to data from crypto.news, Uniswap (Uni) rose by more than 20% in the last 24 hours and reached an intraday height of $ 7.6 on 29 May, almost 57% higher than its low in April, while market capitalization rose to around $ 4.4 billion.
In the meantime, the daily trade volume increased by more than 200% to exceed $ 1 billion. The increase was reflected in the Derivatenmarkt, where open interest rose 20% rose to a record of $ 514 million, which indicates a peak in livered long positions. Positive financing percentages usually mean that most traders are positioned for further profit.
Technicals suggest more upside down
From a technical point of view, Uni seems ready for more persistent profits, after he has broken the daily graph from several bullish patterns.
Uni broke from an inverted head and shoulder pattern and confirmed the move with a bullish flooding candle on Thursday. As an addition to the Bullish Case, the advancing averages of 20 days formed and they just formed a Golden Cross, usually seen as a purchase signal.
UNI prize is also broken above a multi-month trend of lower highlights and lower lows, so that a key resistance zone is cleared. The Supertrend indicator has also turned bullish and is currently positioned below the price, which indicates a different signal that gives further upside down.
If this breakout applies, the reverse head and shoulder pattern suggests a potential move to around $ 10, about 37% higher than the current levels. That target also goes with the 61.8% Fibonacci retracement level, giving it extra meaning.
A large bullish driver who could feed the recent meeting of Uni is UniswapxA new feature that is designed to optimize every Swap by roubling it through the best available source.
It works by having multiple fillers compete to offer users the most favorable price, which uses both liquidity on chains and off-chain. By removing the need for batch and adding competitive prices, Unisewapx has aroused a strong interest in the Defi space.
As an addition to the Momentum, large investors, also known as whales, started collecting uni in considerable quantities. According to data from Santiment, the number of addresses that holds between 10,000 and 1 million uni has risen in recent days. This type of accumulation usually means growing trust among large investors, who can often push prices higher.
Short-term pullback still on the table
Despite the bullish drivers and a strong technical setup, there is still an important resistance level to view around $ 7.87, which marks the 78.6% Fibonacci racement and could act as a short obstacle, which may lead to any consolidation or a small withdrawal for the next leg.
On the other hand, if Uni falls below $ 6.5, this can invalidate the current Bullish Breakout pattern. In that case, the price can come back in the direction of $ 5.81, which coincides with the 50-day simple advancing average and can serve as an important level of support for buyers to take a step back.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
