UNI could rise 20% to challenge key resistance again

The Uniswap price has broken through an important hurdle, which points to a further increase in the next few days. However, this rally faces a number of tough hurdles, suggesting that UNI’s upward momentum is limited.

Uniswap is facing strong opposition

Uniswap (UNI) retested the $ 13.88 support more than five times in seven months and not hurt a single time. When they last met this support, UNI was up 43% in just one week.

Thereafter, UNI fell 9% to its current level of $ 18.37. The price is currently facing resistance from the 50 SMA daily and the bulls need to break this barrier to have any upside. Breaking this barrier will allow UNI to climb 20% to $ 22.44 where the 100 and 200 day SMA is in place.

Due to the confluence of the SMAs, the price is unlikely to break above $ 22.44. However, in one particular instance, an increase in buying pressure could help the price break out of this resistance, allowing UNI to retest the overhead resistance at $ 27.49.

UNI / USDT daily chart | Source: TradingView

IntoTheBlock’s Global In / Out of the Money (GIOM) pattern is also showing a strong resistance area at $ 22.44. Approximately 35,000 addresses bought nearly 220.3 million UNIs at an average price of $ 20.52. Therefore, any short term spike in buying pressure that causes the price to retest this barrier could be countered with selling pressure from traders trying to break even.

Therefore, from an optimist’s point of view, investors can expect an increase of 20% to USD 22.44 compared to current prices.

Source: IntoTheBlock

Contrary to the short term bullish outlook, heightened selling pressure could cause UNI to retest the critical support at $ 13.88. If this decline pushes the price below the support, it will hit lower lows and favor further declines.

If so, the altcoin may fall into the next major support area at $ 9.86.

Another support for UNI’s lackluster prospect are daily active addresses hovering below the 30-day moving average of 1,391. At Uniswap, the number of DAAs has declined since July 2021, suggesting that investors at the current level have no interest in this blue-chip DeFi token.

Source: Santiment

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