- UNI price dropped beneath the triple bottom at $16.72, gathering sell-stop liquidity.
- A quick recovery past this barrier might catalyze a 20% upward move towards $19.94.
- Breaking the support floor at $16.07 will annul the bullish case.
Uniswap (UNI) appears in a position to launch a massive upside move as the alt collected sell-side liquidity beneath a critical support area. With that, a swift recovery will translate to the altcoin surging to higher levels.
UNI Price Targets Higher High
UNI saw its price tagging the support zone at $16.72 three times between 26 December and 31 December 2021, formulating a triple bottom shape. The technical pattern represents a reversal setup, showing an uptrend started.
Nevertheless, the 5 January flash crash saw Uniswap sweeping under $16.72, gathering sell-side liquidity beneath the level. Market makers take advantage of this move to plot liquidity before launching a new upswing.
In its 30% surge, the altcoin will encounter the first hurdle around the 50-day SMA at 417.98. UNI bulls should overpower this hurdle to hit the resistance barrier at $19.94, the level where UNI formed a double top. Moreover, Uniswap might retest the mentioned barrier or rally past it to gather liquidity.
While things appear lucrative for UNI price, failure to maintain actions beyond the support barrier at 416.72 will confirm feeble buying momentum. Such a case might see the altcoin retesting the value area at $16.07. Bulls can trigger another upward move from this level.
Nevertheless, a 4hr candle close beneath $16.07 will form a lower low, running the bullish tale. With such a move, UNI’s price might dip further and possibly retest the barrier at $13.88.
Uniswap saw declines amid the latest crash in the overall crypto market on 5 January. Though most assets lost their vital levels, some tokens appear ready to reverse the underperformances. Uniswap requires a swift surge past the $16.72 barrier to catalyze a 20% upward movement to $19.94. Violating the mentioned barrier will mean plunges for the altcoin.
Furthermore, Uniswap might rely on the broad market for its upcoming price movements. Bullish actions in the entire market will see UNI reversing its sluggish performances and targeting higher highs.