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.

Uniswap’s UNI

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.

Publication date: 
01/25/2021 - 09:08
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.