Uniswap’s 80% gains in July are in danger with UNI price painting a classic bearish pattern

July 30, 2022 Coin Telegraph

Uniswap price risks falling 50% from its current levels due to a bearish reversal setup.

Uniswap (UNI) looks ready to post its best monthly performance in more than a year as it rallied approximately 80% in July, but signs of an extended pullback in the near term are emerging.

Uniswap price nearly doubles in July

UNI's price is having one of its best months ever, reaching nearly $9 on July 30 versus nearly $5 at the beginning of the month, best returns since January 2021's 250% price rally.

*UNI/USD monthly price chart. Source: TradingView*

Merge FOMO an UNI "fee switch" proposal

Uniswap's gains primarily surfaced due to similar upside moves in a broader crypto market. But they turned out to be relatively massive due to an ongoing euphoria surrounding "the Merge."

Notably, the Ethereum blockchain's potential transition from proof-of-work to proof-of-stake in September has triggered a buying hysteria among related toke.

$ETH move bringing the entire ecoystem with it.

Best movers:
•Defi: $LDO $UNI $BIT $AAVE
•Layer 2: $OP $MATIC

And of course because it's crypto $ETC is the biggest pump. pic.twitter.com/hN9Rd6Yr9j
— Luke Martin (@VentureCoinist) July 27, 2022

Additionally, UNI may also have been drawing its gains from a so-called "fee switch" proposal.

Specifically, community governance system that oversees Uniswap has been discussing whether or not they should grant UNI holders the right to earn 0.5% commission from Uniswap's 3% trading fees while rewarding the rest for liquidity providers.

if $uni turns on the fee switch its an easy top 10 coin in crypto
— moon (macro expert) (@MoonOverlord) July 29, 2022

UNI "rising wedge" still in play

From a technical's perspective, UNI is now heading lower after testing $20 as its interim resistance.

It now eyes an extended pullback toward the upper trendline of its prevailing "rising wedge" pattern—around $8.

However, its price would risk falling even further if it lands back inside the pattern's trading range, defined by two ascending, converging trendlines.

*UNI/USD daily price chart featuring 'rising wedge' breakdown. Source: TradingView*

That is primarily because rising wedges are bearish reversal patterns.

They resolve after the price breaks below their lower trendlines. Meanwhile, their profit target are typically at length equal to the maximum distance between their upper and lower trendlineswhen measured from the breakdown point.

In other wordsUNI's price could fall toward $4.50 by September, down 50% from today's price if the pattern plays out.

Conversely, a bounce back at or ahead of testing the rising wedge's upper trendline could have UNI retest $10 as its interim resistance. In doing so, it could eye an extended upside move toward the $11.50-$17 range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Uniswap price risks 45% crash by September despite Robinhood listing

July 15, 2022 Coin Telegraph

Coin Telegraph

Robinhood listing brought UNI some of its recent gains but it doesn't guarantee an extended bull run.

The latest Uniswap (UNI) chart pattern suggests that investors should be prepared for a correction after gaining nearly 20% over the past week.

A 45% UNI price crash ahead?

UNI's price has been trending upward since mid-June inside what appears to be a "rising wedge," which traditional analysts view as a bearish reversal pattern due to its history of luring bulls into buying fake-out bounces.

Therefore, rising wedges resolve after the price breaks below the lower trendline. Traders typically calculate a rising wedge's downside target by subtracting the distance between its upper and lower trendline from the breakdown point.

*UNI/USD daily price chart featuring 'rising wedge' setup. Source: TradingView*

That puts UNI's downside target at $3.8 by September 2022, down 45% from today's price if the breakdown begins near $6.52. However, the target would shift upward to $4.65 if the breakdown originates at the apex, i.e., where the wedge's trendlines converge, resulting in a drop of 32.25% from today's price

Interestingly, a rising wedge also formed between February and April. The pattern snapped a 65% upside move, with a broader 70% price slump that took UNI's value to $3.56 per unit from around $12.50.

UNI price bullish catalysts

Simultaneously, Uniswap has also been painting an inverse head and shoulders (IH&S) pattern with an upside target sitting around $9.50, up 40% from current price levels.

*UNI/USD daily price chart featuring IH&S setup. Source: TradingView*

The bullish setup has one fundamental backing: Robinhood.

Notably, the U.S.-based zero-fee trading app announced on July 14 that it had added Uniswap to its portfolio of cryptocurrencies for its 22.8 million retail investors.

UNI is now on Robinhood @Uniswap #CryptoListing https://t.co/KBoYMziAyc
— Robinhood (@RobinhoodApp) July 14, 2022

Robinhood's listing doesn't guarantee an extended bull run, however, as the market has witnessed in Shiba Inu's (SHIB) case.

Notably, the firm's decision to list SHIB assisted the token in rising by almost 20% on April 12 but couldn't help it hold on to its gains. SHIB's price has crashed by nearly 60% since its Robinhood's listing.

Uniswap analysis: UNI price can double based on a classic technical pattern

June 29, 2022 Coin Telegraph

Altcoin

UNI needs to break above a key technical resistance level to trigger its 100% bull run scenario. Otherwise, a bear flag awaits a 45% price crash.

Uniswap (UNI) market valuation could grow by 100% in the second half of 2022 as it paints a classic bearish reversal pattern.

UNI price bullish setup

Dubbed "inverse head and shoulders (IH&S)," the technical setup takes shape when the price forms three troughs in a row below a common support level (neckline), with the middle one (head) deeper than the other two (shoulders).

Additionally, it resolves after the price breaks above the support level.

The UNI price trend since May 23 checks all the boxes for forming an IH&S pattern, except the right shoulder. A retest of its neckline near $5.71 would form the right shoulder, increasing the possibility of an iH&S breakout scenario, as shown below.

As a rule of technical analysis, the price breaking out of an IH&S structure can rally by as much as the maximum distance between its head's lowest point and the neckline. So, UNI's IH&S's upside target comes to be around $9.78, up over 100% from June 2's price.

Conflicting Uniswap price signals

Uniswap's longer-timeframe charts bring attention to resistance levels that could keep UNI from touching their IH&S target.

That includes an interim resistance level of around $6 that has rejected UNI's price lower at least thrice since May. A successful break above the $6-level could have UNI face the February 2022 support of around $7.52 whose test preceded a 75% price rally to $12.48.23.

The $7.52-level also coincides with UNI's 20-week exponential moving average (20-week EMA; the green wave in the chart below), now near $7.90.

*UNI/USD 1-week candle chart. Source: Tradingview*

Conversely, a decisive pullback from the $6-resistance level could trigger a result in a bearish technical setup, dubbed as a "bear flag."

UNI has already been returning lower after testing levels around $6, which coincides with the flag's upper trendline. That leaves the UNI/USD pair two potential scenarios: decline toward the flag's lower trendline near $3.92, or rebound for a potential breakout above the upper trendline.

*UNI/USD three-day price chart featuring 'bear flag' setup. Source: TradingView*

UNI's move toward $3.92 would risk triggering the bear flag breakdown scenario, meaning a 45%-plus decline to $2.75 when measured from June 2's price. On the other hand, a break above the upper trendline would invalidate the flag setup altogether.

UNI USD