$6.7 Breakout May Trigger A Directional Rally In Uniswap Price

Following the June-July recovery, the Uniswap coin price showcased a steady correction over the past two months. However, this correction assisted buyers in forming a Cup and handle pattern. For the handle portion, the altcoin has obtained significant support of $5.2 and shows recovery signs in the daily chart.

Key points:

The UNI price is recovering in a V-shaped manner
The Higher price rejection candles at $6.7 indicate high supply pressure
The 24-hour trading volume in the Uniswap token is $137 Million, indicating a 7% gain.

 Source-Tradingview

The increased supply in August greatly declined the Uniswap market price, as the prevailing recovery rally took a 180-degree shift from the $9.71 mark. Furthermore, the daily chart displays the reversal started from the 200-day EMA, coinciding with the overall trend as bearish.

However, the bear trend nearly loses its momentum at $5.2 support, reflecting a consolidation range with increasing bullish influence. Currently, the price action displays the growth of 6.5% in the past few days with the support of increased trading volume. 

Also read: Breaking: Uniswap Labs Eyes Fundraising At $1 Billion Valuation, $UNI Price Jumps

Support. Therefore the Uniswap Price action analysis reflects an increase in buying pressure at lower levels, leading to a double bottom. Additionally, the bullish reversal pattern shows a neckline at $6.7, close to the 100-day EMA. 

The increasing demand projects a high likelihood of a price jump to $9.7 to complete the bullish pattern accounting for a price jump of 177%. 

On a contrary note, if the selling pressure increases, the Uniswap market price will prolong the correction fall to $8.21.

Technical indicator

EMAs: the downsloping(100 and 200) EMAs reflect an overall downtrend. Moreover, 100-EMA wavering at $6.7 gives an additional barrier against buyers;

RSI indicator: following evident bullish divergence, the daily-RSI jumps above the midline indicates growth in bullish momentum. Hence, technical indicators support the possibility of a bullish breakout from the $4.7

Uniswap intraday price levels

Spot price: $6.45
Trend: Sideways
Volatility: High
Resistance levels- $6.87, $8
Support levels- $5.75 and 50