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Uniswap price prepares for 20% hike says analyst

Uniswap price prepares for 20% increase says analyst

Although the price of Bitcoin (BTC) has been falling below the low in 2022, analysts still believe in a recovery in the value of the main cryptocurrency in the market and think it possible that the year will see the BTC at $100,000.

However, while the BTC does not start a new uptrend, analysts point out that the Uniswap (UNI) price is in a perfect position to initiate a massive uptrend,

Thus, Akash Girimath points out once UNI has collected sell-stop liquidity that rested below a crucial support level, it should initiate such a move.

“So a quick recovery will likely catalyze higher movement,” he said.

Thus, he points out that the Uniswap price marked the $16.72 support level three times between Dec. 26-31, 2021, creating the triple bottom pattern.

“This technical formation is a reversal configuration and indicates the beginning of an uptrend”, he highlights.

UNI

Thus, he also points out that due to the January 5th flash crash, the Uniswap price dropped below $16.72, collecting sell-stop liquidity below it.

“Market makers employ this move to project liquidity before starting a new uptrend. In this 30% increase , UNI will face the first hurdle – the 50-day simple moving average (SMA) at US$ 17.98″, he points out.

Thus, the analyst points out that bulls need to overcome this block to reach the resistance barrier of US$19.94, where the Uniswap price configured a double top.

“In some cases, altcoin may retest that barrier or sweep above it to collect liquidity,” he says.

Gráfico UNI / USDT de 4 horas

But he points out that a failure to stay above the $16.72 support level will indicate weak buying pressure.

“Such development could lead UNI to retest the US$16.07 barrier, where the bulls can make another round,” he concludes.

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