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Uniswap Rallies In Bearish Conditions, Can UNI Break New Grounds?

Uniswap


Uniswap is making a surprising move, rallying in the face of bearish market conditions, and showing signs of resilience despite the downward pressure seen across the crypto space. As bullish sentiment begins to build, market participants are now focused on whether UNI can maintain this upward momentum and break new ground. 

As UNI continues to display strength, this analysis aims to determine whether Uniswap’s recent upward movement in spite of the broader bearish market conditions, has the potential to break through key resistance levels and reach new highs by examining the current price action and technical indicators.

Indicators Point Toward More Upward Movement For Uniswap

On the 4-hour chart, Uniswap is showing strength as it approaches the $8.7 resistance level while trading above the 100-day Simple Moving Average (SMA). UNI’s positioning above the SMA indicates a firm trend, suggesting that buyers are gaining confidence with the potential of targeting higher resistance levels.

An analysis of the 4-hour Relative Strength Index (RSI) points to the possibility of continued upward movement, as the RSI has rebounded to the 73% threshold after previously dipping to 52%. This rise indicates that positive momentum is gaining traction, suggesting that buyers are increasingly in control and that further gains could be on the horizon.

After successfully breaking above the daily 100-day SMA, UNI has been exhibiting strong upbeat movement signifying a shift in market sentiment, with buyers gaining confidence and pushing the price higher. If Uniswap can sustain this push, it may open the door for additional price appreciation and challenge higher resistance levels.

Uniswap

Furthermore, the RSI on the daily chart is currently at 65%, having risen from a previous low of 43%. This upward movement suggests that UNI is gaining momentum, signaling more growth. If buying interest continues to hold steady, the positive trajectory indicated by the RSI could support an extended rally for Uniswap, reinforcing positive sentiment in the market.

Potential Upside Targets: How Far Can the Bulls Push UNI?

As Uniswap maintains its upward momentum, the immediate resistance level to watch is $8.7, which could pave the way for a challenge of higher thresholds if surpassed. A breakout above this level could see UNI targeting the $10.3 mark, where significant psychological resistance may come into play.

However, if Uniswap fails to maintain this strength and breaks above the $8.7 resistance level, it could result in a pullback, with the price sliding back toward the $6.7 support zone. A breakdown below this level could lead to more losses, possibly targeting lower support areas.

Uniswap



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