Charted: Uniswap’s UNI Explodes Above $12, Why Dips Remain Attractive
Uniswap’s UNI surged over 25% and it broke many hurdles near $10.00 against the US Dollar. A new all-time high is formed near $12.98 and dips seems to remain attractive in the near term.
- UNI gained pace above the $10.00 and $12.00 resistance levels against the US dollar.
- The price is consolidating gains well above $12.00 and the 100 simple moving average (4-hours).
- There was a break above a declining channel with resistance near $8.50 on the 4-hours chart of the UNI/USD pair (data source from Kraken).
- The pair could correct lower, but the bulls are likely to remain active above $10.50 and $10.00.
Polkadot’s UNI Rallies 25%
After forming a support base above $8.000, UNI started a strong increase. It outperformed bitcoin and Ethereum to register gains over 25% in the past 2-3 sessions.
To start the increase, there was a break above a declining channel with resistance near $8.50 on the 4-hours chart of the UNI/USD pair. The pair broke the $10.00 resistance zone and settled nicely above the 100 simple moving average (4-hours).
As a result, there was a strong rally and the price even broke the $12.00 resistance. It traded to a new all-time high near $12.98 and it is currently consolidating gains. An initial support is near the $11.60 level. It is close to the 23.6% Fib retracement level of the upward move from the $7.00 swing low to $12.98 high.
Source: UNIUSD on TradingView.com
The main support is now forming near the $10.00 level (the recent breakout zone). The 50% Fib retracement level of the upward move from the $7.00 swing low to $12.98 high is also near the $10.00 level. Any more losses could lead the price towards the 100 simple moving average (4-hours) at $7.50.
More Upsides?
If UNI price remains stable above $11.50 and $11.00, it could continue to rise. An initial resistance on the upside is near the $13.00 level.
A successful break above the $13.00 resistance zone may possibly clear the path for a push towards the $14.50 and $15.00 resistance levels in the near term. The next major target for the bulls could be $20.00.
Technical Indicators
4-Hours MACD – The MACD for UNI/USD is gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for UNI/USD is well above the 50 level.
Major Support Levels – $11.60, $11.00 and $10.00.
Major Resistance Levels – $12.95, $13.00 and $15.00.
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Aayush Jindal, @KhareemSudlow