Uniswap Price Prediction: UNI Retests Multi-Year Resistance

Uniswap (UNI) Price Prediction: Retesting Multi-Year Resistance

Uniswap price Prediction forecast indicates an increasing optimism as UNI is approaching a breakout point that has been several years long. According to the analysts, the long-term downward trajectory of the token can soon be removed, and the momentum will gather around the $6 resistance area, which could make the token experience a bullish turn to reach a new high.

Multi-Year Breakout in Uniswap Price Prediction

In the latest X post, analyst Don pointed out a multi-year diagonal resistance that has held the price of Token in place since the beginning of 2021. The chart, which is based on monthly Heikin Ashi candles, indicates that there has been a continuous series of low highs that create a clear downward structure. 

following the $6.99 UNI boundary being tested, and a central breakout zone of $6  is being tested, which could spell out the long-term direction of this asset, according to Don.

Source: X

This projection by Don implies that, when UNI closes above this resistance with volume confirmation, the outlook may open up to $20-$40, which is a huge structural overturn. 

The discussion underlines that the breakout would mean a new wave of interest in buying and the possible growth of the trend, especially as the ecosystem keeps expanding with new integrations, such as the introduction of Solana-based assets to the DEX platform.

Near-Term Pullback Amid Volatility in Uniswap Price Prediction

A different analyst, Uncle BullishBanter, also expressed the same argument by stating that the Uniswap price prediction broke out of a symmetrical triangle breakout earlier, which reinforced the strength of the bulls. 

The breakout stood UNI up against the range of $6.85-$6.90, where the sellers re-entered, triggering a short-term retraction. The Uniswap price prediction now depends on whether bulls can defend the immediate support near $6.53, which coincides with a fair value gap (FVG) formed during the earlier breakout.

Source: X

The chart below indicates the composition of this retracement, as it has some robust accumulation regions that are indicated by earlier consolidation areas denoted as “FVG” and “EQ’’. The renewed purchases of these liquidity pockets are usually attractive. 

BullishBanter said that the wider downtrend formation seems to hold as long as the price is above $6.25 and $6.15, then buyers will soon be in control again.

Compression Ahead of Expansion in Uniswap Price Prediction

The Uniswap price prediction has the price at $5.80 at the time of writing, which is a reflection of the consolidation phase of the token after a period of short-term sell-off. The 4-hour chart on TradingView shows that the decline in price post-rejection at $6.90 was followed by a clear downward pattern of lower highs and lower lows, indicating that more selling is taking place.

Source:TradingView

Volume data shows that the recent fall was coupled with the spike in red candles - the symptom of capitulation in short-term holders. Analysts consider the retraction to be a natural correction after overextension in spite of the pullback. In case UNI recaptures the $6.00 once the zone is confirmed, momentum may soon reverse to the side of the bullishly recovering range of $6.50- $6.90.