Uniswap Breaks Through the Resistance
Recently, Uniswap breaks through the resistance and has been making significant strides in the cryptocurrency market. With its decentralized exchange model and utilization of smart contracts, UNI has been gaining popularity as a leading DeFi product. Notably, it has just experienced a breakthrough moment by breaking through a critical resistance level, signifying strong bullish momentum.
As the native token of the Uniswap protocol, UNI empowers users to execute seamless swaps of ERC20 tokens without the need for intermediaries, fees, or KYC procedures. This feature has contributed to its growing market cap, which currently stands impressively at $3,844,367,854.
The breakthrough of the resistance level showcases the increasing confidence of investors in the Uniswap project and highlights its potential for further growth and adoption in the decentralized finance space. As the cryptocurrency market continues to evolve, all eyes are on Uniswap and its UNI token to see how it will navigate these exciting developments in the future.
UNI/USD has been trading in a short-term bullish trend (white upward trendline) since June 11, 2023, after bouncing off from the trendline support zone at around $3.67486 while within a long-term downtrend. It is currently approaching a resistance level (green) at $7.17919 (red). If UNI/USD breaks above that resistance level, it could confirm a bullish market structure shift because the swing high of the long-term downtrend also sits at the price level where the (green) horizontal resistance level resides.
On the other hand, if the price falls and blows past the uptrend support and makes a lower low, it would mean a significant loss of the initial bullish momentum and could potentially signal a resumption of the long term downtrend.
It goes without saying that traders and observers should pay close attention to the price action and volume in the coming days. A decisive break of either the uptrend support or the horizontal resistance could determine the direction of the market for the next weeks or months. Although, analysts believe that the velocity at which the price is approaching the resistance shows a higher chance of the aforementioned bullish market structure shift.
Featured image: Shutterstock
Disclaimer: The information on AlteBlock reflects the authors’ personal opinions. It does not represent AlteBlock’s opinions on whether to buy, sell, or hold specific investments. It is suggested that you conduct your own research before making any investing decisions. You use the information at your own risk. See Disclaimer for additional details.
Dominic Jubemi is primarily into legal practice. However, he has taken interest in building and grooming fundamental skills in FX and Crypto trading, audio engineering and in the nearest future, fiction writing.