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Can Uniswap Wallet Launch Cause a UNI Price Breakout?
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The UNI price has increased considerably since falling to a low of $3.80 in October.
The price nearly reached a long-term descending resistance trend line this week. Will it break out?
Uniswap (UNI) Bounces, Saves Breakdown
The UNI price has traded above the $4 horizontal support area since April 2022. During this time, it also fell under a descending resistance trend line. More recently, the trend line caused a rejection in July 2023 (red icon), leading to a downward movement.
The decrease took UNI back to the $4 horizontal support area in October, where the UNI price initiated a bounce, still ongoing.
The altcoin reached a high of $5.60 this week, slightly below the descending resistance trend line at $5.90.
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The descending resistance trend line has been in place for 475 days. Combined with the $4 area, it creates a descending triangle, considered a bearish pattern for the UNI price.
On Wednesday, the Uniswap team announced it will launch the Uniswap wallet on Android. The team also announced that it will hold a talk at 10:00 AM EST to discuss the decisions that went into Uniswap on Android and new wallet features, languages, and much more.
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What Are Analysts Saying?
Cryptocurrency traders on X (formerly Twitter) are predominantly bullish on the future UNI price trend.
DaveCryptosNews tweeted that the price action is bullish, and there is solid support around $4.60.
GlobeOfcrypto1 outlined a potential breakout from a long-term pattern, which could lead to a significant upward movement.
CryptoUsmaan gave two possibilities for entering a long trade, stating:
“UNI on the verge of breakout. We have important support at $4.85 (200 Daily MA) A good bounce in price can be seen. If price comes to this area then we can look for some long trade. Or if price breakout from trend line then we can look for long trade. Keep an eye on it.”
UNI Price Prediction: Can Price Reach $10?
A zoomed-out look at the weekly chart shows that UNI might have broken out from a long-term descending resistance trend line (white) that has been in place since the all-time high. If so, the price is currently validating it as support.
Another interesting development comes from the weekly Relative Strength Index (RSI).
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.
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The RSI is moving upwards and has just crossed above 50. More importantly, it generated a bullish divergence (green line) at the most recent bounce.
A bullish divergence occurs when a momentum increase accompanies a price decrease. It often precedes bullish trend reversals.
If the altcoin breaks out from the descending resistance trend line, it can increase by 40% to the $7.50 resistance area and possibly 130% to the $12 resistance.
Despite this bullish UNI price prediction, failure to break out from the shorter-term descending resistance trend line can cause a 25% drop to the $4 support area.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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