By Franklin Smith
- UNI price might witness a 20% surge towards $22.44.
- Om-chain metrics indicate dropping user interest and massive resistance in the $18.73 – $21.89 range.
- Violating the $13.88 support floor will lead to a lower low, annulling the bullish tale.
Uniswap (UNI) saw a bounce off from a critical barrier, indicating a potential upward trend. Nevertheless, the token’s upward move encounters a resistance barriers’ confluence, showing capped upside move for Uniswap.
UNI Price on a Challenging Decision
UNI price has retested the support barrier at $13.88 over five times within the past seven months, and it did not breach it. The recent encounter with the level translated to the alt gaining 43% in one week.
The alternative token had corrected nearly 9% since the uptick to its current price area of $18.37. For now, UNI price encounters the 50-day SMA and has to conquer this obstacle to clear the way for upward price movements. Overcoming this hurdle will see UNI rallying 20% to explore $22.44, where 50- and 100-day Simple Moving Averages locate.
With the SMAs confluence, UNI price might witness a move past $22.44. Nevertheless, unique circumstances to trigger a significant buying pressure surge might mean UNI, breaching this resistance area, authoring a move to retest the hurdle at $27.49.
The GIOM model shows the $22.44 blockade. Here, nearly 35,000 addresses that bought about 220.3 million Uniswap tokens at $20.52 average price remain underwater. With that, a near-term surge in buying momentum that sees UNI retesting this barrier might encounter selling strength from these individuals as they try to break even.
Therefore, an optimistic viewpoint shows a possible 20% surge towards $22.44 from UNI’s current level, and further actions beyond it are short-lived and might not hold up.
Also, Uniswap’s daily active addresses seem to support the lackluster picture for the alt. The figure hovers beneath the monthly average, standing at 1,391. The crypto project has recorded decreased DAA since 2021 July, confirming a lack of interest from investors at the alt’s current levels.
Though this appears lucrative for UNI from a near-term viewpoint, intensified selling momentum might push the token towards the support at $13.88. If such a development results in a daily candle close beneath the mentioned barrier, it will form a lower low, canceling Uniswap’s bullish narrative. That can lead to a 29% crash towards the support at $9.86.
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