A well-established Ethereum DEX platform that has gradually set lows since its May high has approached the support level of a descending wedge, which is generally considered a bullish formation. We have compiled the comments of altcoin analysts who shared their price predictions about this formation for Kriptokoin.com readers.
Uniswap (UNI) prepares bullish pattern after falling 83%
On January 19, Uniswap (UNI) breached a long-term support level, but has since been showing positive signals within a bullish pattern . Since May 1, when the ATH level reached $45, the price of UNI has been in a bearish trend. Between May and December, it struggled to initiate many upside moves, fluctuating in the $15 horizontal zone. But it was all in vain and UNI had to close below their mark with the red dot below on January 19, 2021. So far, it has slumped to $7.51 on Feb. 22, representing an 83% drop from the ATH level. The next critical level of support is around $5, a zone it hasn’t touched from January 2021.
Altcoin bulls are getting ready
A bullish pattern already exists as the daily chart does not show that UNI price is trading inside a falling wedge. The falling wedge is a bullish pattern and means a breakout from it would be the most likely scenario. Also, both the MACD and RSI showed large bullish divergences (green lines). Bullish trend reversal often precedes such divergences. As a result, when paired with a bullish wedge, a UNI breakthrough seems like the most plausible outcome. If this happens, the nearest level of resistance is $19.50. This is a horizontal resistance zone and 0.5 Fib retracement resistance level.
Analysis of wave counts
According to crypto analyst TheTradingHubb, UNI is stuck in a correction pattern, indicating that a long-term uptrend is expected to follow.
The downtrend since the all-time high is likely to be an ABC corrective structure with A:C waves of approximately 1:0.618. In black, the sub-wave number is shown. The shape of the falling wedge indicates that Wave C has turned into an ending diagonal. A strong breakout and uptrend are often followed by such formations.
As a result, it backs up daily time frame readings and price activity.
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