What's Behind the Uniswap Surge? | Credit: Hameem Sarwar
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Key Takeaways
The Uniswap (UNI) price surged 30% on Nov. 6.
It broke out from a 245-day descending parallel channel.
Has UNI finally started its long-term bullish trend reversal?
Uniswap (UNI) is one of the biggest gainers today, on Nov. 6, increasing by 30%. It will be the largest daily increase since Feb. 23, 2024, if it holds.
Interestingly, no positive Uniswap news triggered the increase. The most recent development is on Nov. 4, concerning a collaboration with Pudgy Penguins. Uniswap v3 volume and fees are also at similar levels as last week.
Nevertheless, UNI broke out from a long-term resistance trend line existing since the yearly high.
Let’s analyze the UNI price movement and see if a bullish reversal has started and what the next targets are if it has.
The weekly time frame UNI chart shows that the price has increased since its low of $4.69 in August. The upward movement caused a reclaim of the $7 horizontal area. This was a critical area that provided resistance for nearly two years.
After the breakout in March 2024, it seemed that UNI failed to validate it as support, falling below it (black circle). However, the ongoing upward movement reclaimed the area, confirming that the decline was just a deviation.
This week, UNI is creating a bullish, engulfing candlestick (white icon).
Technical indicators are turning bullish. The Moving Average Convergence/Divergence (MACD) has just made a bullish cross and is increasing above 0. The Relative Strength Index (RSI) has crossed above 50. Both imply the increase will continue.
The next long-term resistance is at $19.45, created by the 0.382 Fibonacci retracement resistance measuring from the all-time high.
UNI Price Breaks Out
The daily time frame chart gives an extremely bullish Uniswap crypto price prediction. It shows that the price of Uniswap surged by 30% today, breaking out from a 245-day descending parallel channel. So, it confirms that the correction is complete.
Additionally, the wave count shows a completed A-B-C corrective structure, in which waves A:C had the same length (black).
As a result, UNI likely started the third wave in this five-wave increase (white), which is often the sharpest out of the bullish waves.
The 1.61 external Fibonacci retracement of the drop gives a target of $24.57, aligning with that from the weekly time frame.
UNI’s Bullish Reversal
UNI shows bullish signs in the weekly and daily time frames, highlighted by the breakout from a 245-day diagonal resistance trend line.
The wave count indicates that the most rapid portion of the increase has just started, and UNI can increase toward $24.
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.
