After having endured a bit of sideways movement between 18 April and 25 April, Uniswap’s price has finally gathered enough bullish momentum to make a successful break out of the range. While the upward momentum looks promising at the moment, along with the overall bullish nature of the altcoin market, UNI may see increased price discovery post the $40 price level in the coming week.
At the time of writing, UNI was trading at $40 and had a 24-hour trading volume of $987 million. In the past day’s time, the coin has registered a price hike of over 12 percent and currently had a market capitalization of over $19 billion.
Uniswap 1-day chart
Source: UNI/USD, TradingView
Since 25 April, UNI has exhibited strong bullish momentum as it flipped a key level of resistance to a strong support. At the time of writing, UNI has come in contact with resistance at $40 and may soon be able to breach it. In such a scenario, a new ATH for UNI is right around the corner.
However, if a trend reversal were to take place, then the coin is likely to find support around the $35 price range. This has helped the price on multiple occasions in the recent past and is a key level that helps UNI bounce back up.
There is also another strong support around the $29 price level, however, given the current market scenario, such a drop isn’t expected in the coming week.
Rationale
The technical indicators for UNI look very promising. MACD indicator has undergone a bullish crossover. Currently, MACD line remains well above the signal line with no signs of a trend reversal in the coming days. Stochastic indicator has also undergone a bullish crossover and has also moved extremely close to the overbought zone. This indicated that the buyer market was quite strong and there was great demand for UNI in the market.
Conclusion
Uniswap has registered a new ATH and traders can expect further price discovery in the coming days. The strong bullish momentum in the coin is likely to last a few days in the UNI market as long as there is no drastic shake-up with popular cryptos like BTC and ETH.
