Uniswap (UNI) trades near a confluence of resistance at $8.
UNI has fallen since its yearly high of $17.05 on March 6.
Can UNI break out from its pattern and approach its March high?
The Uniswap (UNI) price has performed neutrally in 2024. After several upward and downward movements, UNI has increased by 7% in the year to date.
On Oct. 9, the Uniswap price increased despite an ongoing crypto market correction. UNI has nearly reached a confluence of resistance levels, the reaction to which could determine the future trend.
Let’s examine the UNI price movement and see if a breakout or rejection is more likely.
Uniswap Metrics
The Uniswap Total Value Locked (TVL) has fallen since April and is currently at $4.60 billion. While this shows a recovery since the start of 2023, the TVL is well below its all-time high of $9.91 billion in 2021.
The Uniswap team, however, noted that the cumulative Layer-2 volume on the Uniswap Protocol is increasing at an accelerated rate, from just over $6 billion in 2021 to over $380 billion in 2024.
Uniswap also announced the release of UniswapX on the mobile app. Swaps through UniswapX will have no gas, failed transaction fees, and Miner Extractable Value (MEV) protection.
An interesting metric to look at is the disparity between daily transactions and daily transaction volume.
The daily transactions have been increasing since the start of the year. After a brief correction in March, they continued to increase gradually and reached a high of slightly over 2.4 million in August.
Interestingly, the daily volume is lagging. It peaked at nearly $900 million in March but has fallen since then, currently at $170 million despite the increase in transactions.
So, Uniswap’s on-chain metrics show a middling performance. Nevertheless, despite an ongoing crypto market correction, the Uniswap price increased in October.
Technical indicators are also at critical levels. The Relative Strength Index (RSI) has nearly reached 50 from below. A movement above 50 will signal that a bullish trend reversal has started.
As a result, a price breakout above $7.70 will confirm that the bullish trend reversal has begun. Let’s examine the daily time frame to see if this is likely.
UNI Breakout Ahead?
The daily chart provides a decisively bullish outlook for several reasons.
Firstly, UNI has traded inside a descending parallel channel since the high on March 6. These channels usually contain corrective movements, meaning an eventual breakout from it is the most likely scenario.
The Uniswap price is approaching the channel’s resistance trend line at $8.
Secondly, the decline since the yearly high is a completed A-B-C correction where waves A:C had a nearly exactly 1:1 ratio.
Finally, the daily RSI and MACD are increasing and above their bullish thresholds at 50 and 0, respectively.
The daily analysis indicates that UNI is likely to break out from the channel. Since this will also entail a breakout from the long-term resistance, it will confirm the bullish trend reversal.
Afterward, the UNI price can increase to its yearly high of $17.05.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
