UNI Bullish Rebound Signals Upsurge, Targets $8.7 Resistance Ahead
October 02 2024 - 7:30AM
NEWSBTC
UNI is making a strong comeback as bullish momentum pushes the
token toward the critical $8.7 resistance level. After bouncing
back from a recent low of $6.7, market enthusiasm is building, and
traders are watching closely for a potential breakout. With
buying pressure increasing and sentiment turning positive, UNI’s
rally could gain further upward traction if it manages to overcome
this key barrier, signaling a renewed bullish trend and paving the
way for additional price advances. The aim of this article is to
analyze UNI’s recent price rebound and its potential to break
through the $8.7 resistance level. By examining key technical
indicators and market sentiment, the article seeks to provide
insights into whether its current upward momentum can be sustained,
and what traders should expect if the token successfully breaches
this critical price point. Market Sentiment Shifts: Bulls Back In
Control Following the bullish comeback at $6.7, UNI’s price on the
4-hour chart has continued to gain strength to surge toward the
$8.7 resistance level. UNI is also trading above the 100-day Simple
Moving Average (SMA), suggesting a positive upward trend that could
lead to a potential breakout. An analysis of the 4-hour Relative
Strength Index (RSI) shows that the signal line is currently at
45%, climbing from the oversold zone and approaching the 50%
threshold. This upward movement indicates that selling pressure is
easing, and buyers are beginning to regain control. As the RSI
moves closer to 50%, this shows a potential shift toward more
balanced market conditions, with the possibility of a bullish
reversal if the pressure continues. Related Reading: Uniswap Price
on the Rise: UNI Eyes Set on Further Gains Furthermore, on the
daily chart, UNI is exhibiting strong upward momentum, marked by a
bullish candlestick formation following its successful rebound. The
price is now attempting to break above the 100-day SMA, a critical
resistance level that could solidify the rising trend. A sustained
move above the 100-day SMA would reinforce market confidence,
signaling increased buying pressure and the potential for more
price appreciation. Finally, on the 1-day chart, a detailed
examination of the RSI formation indicates that UNI may maintain
its optimistic trajectory as the indicator’s signal line is rising
again, positioned at 55% after dropping to the 50% threshold,
suggesting a sustained upward outlook. Potential Scenarios: What
Happens If UNI Breaches $8.7? If UNI manages to break through the
$8.7 resistance level, it could ignite a price surge, propelling it
toward the $10.3 mark. A successful breakout above this critical
level is likely to draw in more buyers, pushing UNI closer to its
next resistance target of $11.8 and beyond. Related Reading:
Uniswap Price (UNI) Pumps 20%: Is This the Start of a Major Rally?
Nevertheless, if UNI fails to maintain this strength and breaks
below the $8.7 resistance level, it might result in a pullback,
with the price sliding back toward the $8.7 support zone. A
breakdown below this level could lead to further losses,
potentially targeting lower support areas. Such a move would signal
weakening optimistic sentiment, raising concerns of a more extended
bearish trend and prompting traders to brace for additional
downside risks. Featured image from Adobe Stock, chart from
Tradingview.com
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