The UNI token, the native token of Uniswap, has recently shown signs of bullish momentum amidst a bearish market trend. As the overall cryptocurrency market begins to experience a price reversal and form bullish price action, UNI appears poised for significant upside potential after a prolonged price decline.
Technical analysis experts have identified a bullish double-bottom pattern forming on UNI’s daily chart. While the asset has already shown two bottoms, it is still in the process of forming the second leg of the pattern. Additionally, a bullish divergence has been observed, with the Relative Strength Index (RSI) showing a higher low, indicating a potential price reversal.
Based on recent price action and historical patterns, if UNI manages to hold above the $5.75 level, there is a strong possibility that it could see a 15% increase to reach the neckline of the double-bottom pattern at $7.15. Further bullish momentum could push UNI to breach the neckline and close a daily candle above $7.15, potentially leading to a 15% rally to the $8.25 level in the future.
At the time of writing, UNI is trading around $6.21, with a 4% increase in the past 24 hours. However, trading volume has decreased by 25% compared to the previous day, indicating reduced interest from traders and investors.
Intraday traders seem to be following the bullish market sentiment, as evidenced by data from Coinglass. The UNI exchange liquidation map shows that traders have taken significant long positions at $5.88 on the lower side and $6.33 on the upper side, with $2.81 million and $400K worth of long and short positions, respectively. This strong bet on the long side reflects traders’ optimistic outlook on the market.
Overall, UNI’s technical analysis and market indicators suggest a potential uptrend in the near future. With the cryptocurrency market showing signs of a price reversal, UNI could be well-positioned for a significant price increase in the coming days.