Uniswap price likely to provide buy-the-dip opportunity before rallying 45%

Source Fxstreet
Jun 1, 2024 05:30
  • Uniswap price is likely to slide double-digits before it stabilizes. 
  • A bounce from the $9.26 to $8.29 accumulation zone could send UNI to $11.39 and $12.87.
  • A breakdown of the $8.29 support level will invalidate the bullish thesis. 

Uniswap (UNI) price is attempting a comeback after suffering from a 66% crash between early March and mid-April. The incoming correction will provide patient buyers an opportunity to accumulate UNI before triggering a volatile upswing. 

Read more: Uniswap founder hopes SEC doesn't pursue enforcement as on-chain data shows price spike is on the horizon

Uniswap price sets the stage

Uniswap price triggered a mean reversion rally between May 15 and May 26, pushing UNI up by 75% to set up a local top at $11.81, roughly coinciding with the midpoint of the 66% crash noted between March 6 and April 13. An interesting observation is that the 75% rally was preceded by a month-long accumulation phase. The ongoing correction is likely going to lead the DEX token into a similar sideways movement between the $9.26 to $8.29 range.

As Uniswap price bounces from the aforementioned range, investors can expect it to take another jab at the $11.39 hurdle. A flip of this key level into a support floor will be a key development, suggesting that the bulls are in control. In such a case, UNI could surge nearly 13% and revisit the $12.97. In total, this move would constitute a 45% gain from the midpoint of the aforementioned accumulation range. 

The Relative Strength Index (RSI) is close to retesting the mean level of 50 on the daily timeframe, supporting this accumulation outlook for Uniswap's price and signaling a potential bounce in the works for UNI. The Awesome Oscillator (AO) is also above its mean level of zero, hinting that bullish momentum is in control. 

Also read: Ethereum on-chain and derivatives data indicates bullishness following updated ETH ETF S-1s from issuers

UNI/USDT 1-day chart

UNI/USDT 1-day chart

Supporting this uptrend is Santiment’s 30-day Market Value to Realized Value (MVRV) indicator. The 3.88% value shows that investors who purchased UNI in the past month are at an average profit of 3.88%. Even if these holders decide to sell, it would negatively impact Uniswap price’s bullish outlook. On the contrary, investors tend to accumulate when the MVRV indicator is under the zero line. 

UNI 30-day MVRV

UNI 30-day MVRV

On the other hand, if Uniswap price flips the $8.29 support level into a resistance level on a daily time frame, it would invalidate the bullish thesis and potentially restart the accumulation phase. 

In some cases, Uniswap price could revisit the $7.56 weekly support level roughly 8% away from $8.29.

Also read: Top trending meme coins BOME, TRUMP, WIF: Bullish signs persist

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Solana Empty Glasses: BEER Coin Fizzles 70% In Alleged Rug PullThe Solana blockchain has revealed a sobering story, adding to the turbulence in the bubbly world of memecoins, such as BEER. The coin rose to prominence in recent weeks, experienced a dramatic price
Author  NewsBTC
The Solana blockchain has revealed a sobering story, adding to the turbulence in the bubbly world of memecoins, such as BEER. The coin rose to prominence in recent weeks, experienced a dramatic price
goTop
quote