Reversal Pattern May Shoot UNI Price Toward $8

The Uniswap (UNI) market price has doubled since last month and is currently trading at $6.99. Furthermore, the altcoin has recently triggered an inverted head and shoulder pattern with a $6.5 resistance breakout. Thus, the expected retest to the breached resistance should give an entry opportunity for interested traders.

Key points:

• The UNI price has gained 28% in the last three days.
• The bullish crossover between the 20-and-50 EMAs may accelerate the ongoing bullish recovery.
• The 24-hour trading volume in the Uniswap token is $385.8 Million, indicating an 8.8% gain.

Source-Tradingview

For the past two months, the UNI buyers struggled to breach the $6.5-6.1 supply zone, resulting in a range-bound rally. However, the consolidation shaped into an inverted head and shoulder pattern and offered a recovery opportunity for coin holders.

On July 14th, the UNI/USDT pair gave a decisive breakout from the $6.5 neckline resistance and a massive volume pump. This increasing volume reflects the buyer’s commitment to a legitimate recovery rally.

Today, the UNI price is down 0.43% and is expected to retest the breached resistance. Furthermore, if buyers could sustain the altcoin above the $6.5 mark, the market price should soar 14% to the $8 psychological resistance. 

If buying pressure persists, the altcoin may slice through the $8 resistance as well.

On a contrary note, If the UNI price fails to show sustainability during the retest phase, the sellers may pull it below the $6.5-6.1 support.

Technical indicator

The daily EMAs 20, 50, and 100 offer significant input during the past eight months’ downtrend, providing dynamic resistance to UNI price. However, the recent price recovery has reclaimed these EMA and is expected to offer a possible support level.

Since the recent consolidation phase, the RSI slope has been rising steadily, hinting at the growth in bullish momentum. However, the currently bearish divergence in its peak favors a retest phase.

• Resistance levels- $8, $9.8
• Support levels are $6.5-6.1 and $4.66