The Uniswap price seems to have found a floor at $21.60. UNI has bounced +15% from this morning’s lows and is now fast approaching the next big level.
Like most of the market, last week was a tale of two halves for UNI. The DeFi token started Monday at $16.45 and, by Wednesday, had rallied +82% to $30.03.
So far, so good.
After such a strong performance from the Uniswap price, it was no surprise to see some profit-taking towards the end of the week. By the end of play Friday, UNI was off the highs, lower by -16% to $25.16.
Friday’s weakness spilled over into the weekend, and the token bleed lower by a further -14% to $21.63.
Over the last couple of hours, we have seen some strength returning across the cryptocurrency markets. Uniswap has now found a bid and reversed higher from the lows.
Currently, the Uniswap price is trading at $24.86 and about to print its third consecutive 2-hour green candle.
Whilst much depends on the performance of the broader market. Now, the momentum seems to be higher. Although, there are obstacles to overcome before getting back to its midweek high.
The 2-hour chart shows that this morning’s low at $21.63, tagged the lower end of a descending trend channel.
Additionally, this trend was perfectly aligned with the low point from a pull-back on Tuesday. The third touch on this level later this morning confirmed the strong support.
Above the price, we can see a descending trend line from Wednesday’s highs. This is currently at $25.80 and is the immediate resistance.
If the price clears this resistance, it should continue higher to $28.00.
Given the current momentum, this is the likeliest scenario.
Nonetheless, if the momentum fails and the Uniswap price drops below today’s low, the bullish outlook will be negated.
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