The cryptocurrency market has been abuzz with speculation surrounding the potential rally of Uniswap (UNI), the native token of the leading decentralized exchange (DEX) Uniswap. According to prominent crypto analyst Ali (@ali_charts), the TD Sequential indicator has flashed a buy signal on the daily chart for UNI, suggesting that the token might be gearing up for a 1-4 day rally, potentially reaching the $10 level.
The TD Sequential is a popular technical analysis indicator used to identify potential trend reversals and is often employed by traders to spot potential buy or sell opportunities. A buy signal from this indicator can be interpreted as a bullish signal, indicating a possible upward price movement in the near future.
Reinforcing this bullish outlook is an analysis from AltFINS, a respected cryptocurrency analysis firm. In their trade setup, AltFINS noted that while trends are mixed, the price of UNI had a bearish breakout from a Descending Triangle pattern below the $10.00 triangle support, followed by a break below the crucial $8.00 level and the 200-day moving average. However, the price found support at the $6.00 level and could revisit this area in the near term, potentially presenting a swing trade entry level with an upside potential of around 30% to the $8.00 resistance level.
Source: altFINS – Start using it today
AltFINS further highlighted that UNI had previously spiked up following the announcement of a governance proposal that would reward token holders and stakers with fees generated by the DEX. This proposal, coupled with Uniswap’s position as the biggest DEX and a beneficiary of the move towards decentralized exchanges and non-custodial trading solutions, could further fuel the bullish sentiment surrounding the token.
In terms of technical analysis, AltFINS noted that the price is currently trading in a Descending Triangle pattern, where typically, a breakout occurs in the direction of the existing trend. While the short- and medium-term trends are downward, the long-term trend for UNI remains an uptrend. Additionally, momentum indicators such as the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) suggest that momentum could be nearing an upswing, further supporting the potential for a rally.
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Show more +Key levels to watch, according to AltFINS, include the nearest support zone at $8.00 (which UNI has already broken), followed by $5.60. On the resistance side, the nearest resistance zone is $10.00 (the previous support level), followed by $13.00 and $17.50.
It’s worth noting that the current price of UNI is around $7.5 at the time of writing, which could potentially provide an attractive entry point for traders and investors looking to capitalize on the predicted rally.
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