Prominent analyst Anasta Maverick revealed on X (formerly Twitter) that UNI’s price has broken out of a descending wedge pattern, a bullish setup targeting $17.70.
The analyst pointed out that the price of UNI is currently under the $11 resistance threshold, which needs to be surpassed for further upside movement to be witnessed. It seems as though the bulls are in command, which suggests that if the momentum picks up from around this level, the price could explode upwards.
What you'll learn 👉
UNI Chart Analysis: Breakout From a Descending Wedge
As per the analysis of the Uniswap chart, the pattern emerging is called a descending wedge that indicates bullish reversals. The pattern consists of two downward sloping and converging lines, and when the price crosses the upper trend line, there is an explosive upward shift in momentum.
There was a support level between $6.50 and $7.00 that was pivotal in forming the base of the wedge, giving enough time for the price to consolidate before breaking out. Following the breach of the wedge’s upper trendline, bullish momentum has gained traction, suggesting a strong reversal.
Key Resistance Levels and Targets
Uniswap is currently testing the $11 resistance, a level that has historically capped upward price movement. Breaking and sustaining above this level would signify a clear path for the price to aim for $17.70. This target aligns with the measured move derived from the wedge’s height, which suggests a 44.46% potential upside.
Historical price action also supports the $17.70 level as a significant point of interest, making it a likely target for traders monitoring this rally. Additionally, the breach of prior dynamic resistance levels supports the continuation of bullish momentum.
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Momentum Indicators and Volume Spike
The breakout is accompanied by a notable increase in trading volume, a hallmark of strong bullish sentiment. Higher highs and higher lows on the daily chart confirm that bulls are in control. Momentum indicators, while not detailed in the analysis, are likely supportive of this upward trend.
Anasta Maverick emphasized that UNI’s push above $11 resistance is critical for sustaining its rally. If volume remains high and bullish candles close above this level, the path toward $17.70 could remain intact.
Uniswap’s current price movement has positioned it for an explosive rally, with key levels and bullish patterns aligning for potential further upside. Traders are closely monitoring $11 as the pivotal resistance for continued gains.
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