The latest altcoin report from technical analyst named Rekt Capital sees a bullish signal for the price of Uniswap token (UNI).
it highlighted He UNI successfully tests new support around $11 (USD) Last week, it was bouncing from there. As the orange bar on the graph shows, this was something that was possible because this area has historically served as its resistance.
In bullish trends, it is common for the market to turn old resistances (maximum) into support (minimum) due to the psychology of traders, as is usually the opposite in bearish periods.
After breaking out around $11, UNI price surged 18% to $13, its highest in two weeks. With this momentum, the market is trying to return to US$17, the two-year high it reached three weeks ago. Such a zone was reached when Bitcoin (BTC) broke its all-time high of the previous bullish cycle, and set new records.
For Rect Capital, The token should trade at new support levels at the end of the month of March, as it represents an increase compared to the previous monthly closing. This can be seen in the following graph, in which this key area appears in orange.
“Continued stability above this orange zone would be bullish for the UNI,” he says, adding that a monthly close above this level would mean the currency is close to confirming its position in a key range from the past. Is reaching. It ranges from US$11 to US$19.22, as shown by the red line on the graph.
$19.22 was held as support in the previous 2021 bullish cycle. That’s why they could prove to be a resistance zone if the market continues to push the UNI higher.
Rect Capital highlights that “this is why UNI sustainability is so important here.” However it makes the reservation that, although it closes above new support, Technically there could still be another pullback set up There as another test.
If such a decline were to occur, he warns that “it would be a normal and healthy action.” That is, it will not mean a break in its upward trend until it recovers. As an example, it highlights its successful test of support at the weekly level and the bounce from there.
“We have seen successful tests on the weekly period and if we see the same on the monthly period, it will only serve as confirmation that the UNI is poised to break the orange-red macro range over time,” he said. is ready.”
This has been presented as good news for its long-term investors who are facing losses, given that its price traded 70% below its all-time high of USD 44.97 recorded more than three years ago in May 2021. Has been.
As CryptoNoticias reported, what could spur a correction in its price is that Bitcoin continues to reach new price records. Historically, this has created greater demand for cryptocurrencies in general due to expanded risk appetite.
Uniswap sets new volume record
Bullish expectations for UNI according to technical analysis and Bitcoin trends in the month relevant for its protocol. Uniswap hits a new all-time high for monthly volume in its Layer 2 network above $30 billion,
according to statistics Communications Today, that is almost double the previous record of more than $15 billion by Uniswap Labs. The figures include the volume of arbitrum, optimism, polygon and base.
For all this, it should be noted that UNI is the native token of Uniswap, a decentralized exchange for the exchange of tokens on Ethereum and other networks compatible with the Ethereum Virtual Machine. Therefore, if it registers greater adoption, it will likely be preferred by its market.
