Uniswap is steady when writing but firm, reading from the performance in the daily chart.
Even though buyers are confident, there must be indicators, which mean breaking above immediate resistance levels. As it is, UNI has support at $5.8 and rebounding from the 61.8 percent Fibonacci retracement level of the June to August 2022 trade range, clear in the daily chart.
On the positive side, UNI buyers must first break above $7 and the middle BB, preferably with rising trading volumes, for a clear trend definition. In that case, the token may soar to retest August 2022 highs, even edge higher in a bullish continuation pattern, aligning with gains of the better part of mid-Q3 2022.
Uniswap to Massively Benefit from Ethereum’s Upgrade
Traders and investors are confident in Uniswap in the days to come. This is because Uniswap is the most dominant DEX on Ethereum.
Ethereum is transiting to a proof of stake network on September 15, a welcomed upgrade that will make the platform energy efficient and lay the foundation for better scaling in the future.
Because Uniswap is one of the most active protocols in Ethereum, helping push the block utilization rates above 97 percent, the DeFi dApp will benefit immensely from any upgrade on the smart contracting platform. As a result, UNI will likely expand in tandem with Ethereum, clearing major resistance levels in a buy trend continuation pattern.
Uniswap Technical Analysis
Uniswap prices are steady when writing and trending below $7.
As it is, UNI bulls have failed to push above the middle BB with high trading volumes to unwind losses posted on September 6. Subsequently, this failure places sellers in charge despite prices floating above the middle BB and in a tight trade range.
Ideally, if buyers are to take charge, there must be a sharp close above $7 to reverse the losses of September 6, yanking price action to favor buyers from an effort versus result perspective. In that case, UNI could rally towards $9.5, bouncing from the 61.8 percent Fibonacci retracement level of the June to August 2022 trade range.
Being cautious, losses below last week’s lows at $5.8 may diffuse the uptrend’s momentum, forcing prices to align with losses of September 6 with targets at around $4.5—the 78.6 percent Fibonacci retracement level.
Technical charts courtesy of Trading View.
Disclaimer: Opinions expressed are not investment advice. Do your research.