The Uniswap price has been on a tear recently. But UNI has the potential to return to the May all-time high if it hurdles the approaching resistance.
Uniswap (UNI) is trading at $23.25, down $0.27 (-1.18%).
The last two weeks have seen a return to form for the decentralised liquidity provider. Following a test of a major support level at $14.25 on the 20th of July, UNI has gained 64%.
Even more impressive is that over the 15 days, the price has closed higher 13 times.
As a result, Uniswap’s market cap has risen to $13.7 billion, making it the 10th-largest cryptocurrency, behind Polkadot.
However, there are indications that UNI can go a lot higher. But for that to happen, the price must deal with a key resistance level.
The daily chart shows several positive developments.
Firstly, during July’s flush out, Uniswap reversed from the significant trend line at $14.25. The trend has underpinned this year’s rally and should be viewed as long term price support.
Additionally, the recent rally has lifted UNI above a descending trend line at $20.15, which becomes the first technical support.
Below the descending trend, the 50-day moving average at $19.03 reinforces the support.
However, the 100 DMA at $24.92 and the 200 at $25.45 provide robust confluent resistance.
On that basis, a clearance of $25.50 would increase the bullish outlook. In this event, an extension to the all-time high of $48.12 becomes possible.
The bullish view remains as long as the price holds above the descending trendline at $20.15. A close below this level invalidates the thesis and suggests a return to long term support.
For more market insights, follow Elliott on Twitter.