- Uniswap price has emerged from a descending channel.
- The bullish hammer on the 4-hour chart confirms that a corrective low is in place.
- The successful retest of the March 11 low establishes a potential double-bottom pattern.
Uniswap price is currently set to close with its fifth consecutive positive month. The breakout into new highs on March 8 failed to stick, and the price had been falling in a descending channel until March 11.
Uniswap price 21% surge awaits double-bottom breakout
From the November 2020 low to the March high UNI gained almost 1,900%, solidifying it as one of the best performing cryptocurrencies over the last four months. The price action following the all-time high at $35 was corrective and resulted in just a 16% pullback.
The breakout from the descending triangle on March 11, combined with the successful retest of the correction low at $29.50, has raised the odds that UNI is readying to continue the fantastic advance and firmly close March with its fifth consecutive positive month.
To confirm a new rally, Uniswap price needs to trade above $32 to trigger the small double-bottom on the 4-hour chart below. The first significant resistance level is the 1.382 extension level at $38.70, which equates to a 21% gain from the double-bottom trigger price.
If the price continues to accelerate, it could easily reach the key 1.618 Fibonacci extension at $42.
UNI/USD 4-hour chart
To stay true to the handbook of trading with discipline it is important to clearly define support levels. The immediate downside price targets to watch are $29.20 and the hammer formation’s low, and the channel’s lower trendline at $27.
But the .50 retracement level at $26.50 will determine whether Uniswap price is entering a deeper correction phase. Note, the .50 retracement level runs through a lot of price congestion going back to February 24.
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