After being in a three-week suppression in a descending channel (white), Uniswap (UNI) bulls did not fail to resurge at the 16-month trendline support (white, dashed).
In its endeavor to battle the selling pressure, the buyers would aim for a retest of the EMA ribbons. A close Above the Point of Control (POC, red) would substantially improve the chances of a breakout towards the $10-zone. At press time, UNI was trading at $9.64, up by 2.74% in the last 24 hours.
UNI Daily Chart
Source: TradingView, UNI/USDT
UNI’s long-term trendline support has historically encouraged short-term recoveries. Thus, the buyers have been building up pressure near its POC over the past month.
After over four months of a bearish phase on its EMA ribbons, the bulls finally are able to constrict the gap between these ribbons in their venture to propel a bullish flip. Also, considering the strength of the $9-mark coinciding with the trendline support, the bulls would aim to push for more in the days to come.
Although an uptick from this level shouldn’t really surprise the investors, the buyers needed some serious work on their part to ramp up the volumes to reclaim their status beyond the bound of the EMA ribbons. Any potential recoveries could head right into a consolidation phase as the gap between these ribbons lessens. The overall sentiment would then play an important role in its future trajectory.
Rationale
Source: TradingView, UNI/USDT
The Relative Strength Index Stabilised itself in the 38-46 range in the last two weeks. The bulls still needed to continue the current revival beyond the midline to affirm a true change in the current momentum.
With the OBV marking higher peaks in the last 13 days, it marked a potential bearish divergence with the price on the daily timeframe. Any reversal from the oscillator’s trendline resistance could lead to a delayed recovery for the alt.
Conclusion
Taking account of UNI’s past tendencies, it flashed the potential of finding its way toward the $10-$11 range in the days to come. The threats along the OBV could delay this proposition whilst the alt enters a likely squeeze phase.
Besides, the alt shares a 94% 30-day correlation with the king coin. So keeping a close watch on Bitcoin’s movement would be inevitable to make a profitable move.
