As a seasoned crypto investor with a background in technical analysis, I’ve closely observed the recent Uniswap (UNI) price correction and its potential impact on the ongoing market recovery. The sideways trend of UNI token since early March has been intriguing to watch, as it formed a symmetrical triangle chart pattern – a bullish continuation formation.
In the current market uptrend, the price of Uniswap has bounced back above the $7.5 support level following a correction. Although the price trend remains horizontal, the long-term buyers have thwarted any significant price drop, as indicated by the rejection in the daily chart’s tail. A study of the daily chart reveals that the ongoing correction is contributing to the formation of a bullish continuation pattern known as a symmetrical triangle. As for whether to invest during this dip, it would be wise to carefully consider your investment strategy and risk tolerance before making a decision.
Uniswap Price Analysis: How the Triangle Pattern Could Signal Next Recovery Wave
Over the past three weeks, UNI, the native cryptocurrency for the decentralized crypto exchange, has experienced a significant decrease in value. Following its peak at $11.96, the coin price dropped by nearly 44%, reaching a low of $6.76.
The declining UNI token price found a reliable cushion at the bottom line of the symmetrical triangle’s resistance. This triangle chart formation, which emerged in early March, has facilitated a sideways trend and provided an opportunity for the price to regain its bullish energy, aiming for a subsequent upward surge.
As a crypto investor, I’ve noticed that the altcoin has bounced back three times from its bottom trendline, signaling an essential accumulation point for those looking to buy dips. Currently, Uniswap’s token is priced at $8.05 and sits above a triangle pattern, giving it the necessary strength to make its next significant leap.
As a researcher studying on-chain transactions, I came across an intriguing observation made by Lookonchain. A large investor or whale transferred 2 million USDC to purchase around 243,198 UNI tokens on Kraken. Before the transaction, this investor had deposited 2 million USDC into their Kraken account. Subsequently, they withdrew roughly 1.96 million USD worth of UNI tokens from the same platform only about 50 minutes prior to Lookonchain’s report.
The whale/institution spent 2M $USDC to buy 243,198 $UNI again.
I made a deposit of 2 million USDC into Kraken about 7 hours ago, and more recently, I initiated a withdrawal of approximately 243,198 UNI (equivalent to around 1.96 million USD) from the same platform roughly 50 minutes prior to this statement.
— Lookonchain (@lookonchain) July 10, 2024
Furthermore, this whale made two significant transactions on Kraken: they deposited approximately 4 million USDC and withdrew around 35,983 Aave worth about 3 million USD, as well as 123,183 Uniswap (UNI) tokens valued at roughly 1 million USD. These substantial UNI transactions suggest a stronger likelihood of a bullish reversal in the market, given that its price has surpassed critical support levels.
The significant increase that’s anticipated could push the value of the asset up by nearly 26%, potentially surpassing the resistance line of the triangle configuration. A breach above the upper trendline would indicate a resumption of the upward trend and encourage investors to attempt reaching the previous peak of $17.
Technical indicator
- BB Indicator: The lower band of Bollinger band indicator challenge on the downside indicates the seller remains a dominant player.
- ADX: The rising ADX slope indicates no weakness in bearish momentum so far to bolster price reversal.
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2024-07-10 23:24