- Uniswap (UNI) shows potential for further price increases.
- Technical analysis by crypto trader Ali reveals bullish formations on daily and 4-hour charts.
- UNI has been in a descending triangle since May, with decreasing selling pressure.
Uniswap native token, UNI, looks poised for additional upside after breaking out of key chart patterns, according to recent technical analysis by crypto trader Ali.
In a tweet, Ali highlighted bullish formations on both Uniswap’s daily and 4-hour price charts that point to a target of around $6 for UNI.
On the daily timeframe, UNI is pressing up against the hypotenuse of a descending triangle dating back to May that has repeatedly rejected advances. Decreasing selling pressure indicates waning bearish strength. A decisive break above this triangle could trigger a rapid move upwards based on the measured target.
Uniswap breaking out in the 4-hour chart
Additionally, the 4-hour chart shows UNI recently breaking out of a smaller bull flag pattern. This bullish continuation formation also projects a measured move to approximately the $6 level.
Bull flags are considered high-probability continuation patterns. Uniswap currently trades around $4.84 after retreating slightly from local highs. Reclaiming the key $5.15 resistance could open the door for UNI to retest the September highs around $6.07.
UNI’s upside comes amidst broad crypto market gains attributed to optimism for a potential Bitcoin spot ETF approval in early 2023. The ETF anticipation has fueled an increased risk appetite.
With Uniswap usage and volumes rising thanks to the layer-2-focused Uniswap Pro, Ali’s analysis provides a clear roadmap for traders looking to play UNI’s developing bullish momentum. A triangle resistance breakout could confirm the upside case.
