- Uniswap price is traversing a downward sloping parallel channel, suggesting a bullish breakout soon.
- A decisive close above the upper trend line of the technical formation at $25.24 will confirm the start of an uptrend.
- If UNI fails to hold above $17.99, it will invalidate the bullish thesis.
Uniswap price has been on a massive downtrend since September 2 but shows signs of making a U-turn as it approaches an inflection point. However, UNI needs to overcome this critical hurdle to manifest the 20% run-up.
Uniswap price ready for a move higher
Uniswap price set up three distinctive lower highs and lower lows since August 17. When these peaks are connected using trend lines, it reveals the formation of a descending parallel channel.
Coupling the overall bullish structure of the market and the technical formation’s breakout characteristics, which is also optimistic, investors can expect UNI to trend higher.
Therefore, it is crucial for Uniswap price to produce a convincing close above the $25.24 resistance barrier. Doing so will give UNI a free pass to ride the bullish wave and tag the $29.43 hurdle. This move marks a 20% ascent from the current position.
However, clearing this blockade could push Uniswap price to make a run at the next resistance level at $33.34, constituting a 38% advance.
UNI/USDT 12-hour chart
On the other hand, Uniswap price might get rejected at $25.24, leading to a downswing toward the immediate support floor at $20.62. A breakdown of this barrier will indicate that the upswing scenario is unlikely to manifest.
However, as a confirmation, market participants can wait for UNI to slice through the $17.99 demand level, which will serve as an invalidation of the bullish thesis.
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