- Uniswap price is up 3% on the week.
- UNI could set up a move towards $10.
- The swing low at 5.23 can be used as an invalidation of the bullish thesis.
Unswap price shows bullish cues after experiencing the largest sell-off in 2023 last week. Traders should watch the UNI price closely to participate in the next volatile price movement.
Uniswap price shows bullish potential
Uniswap price has experienced mixed signals in the past two weeks. While the digital asset fell by 7.5% last week, it has recovered somewhat, with a 3% increase this week. This up-and-down price action has been a reflection of the general sentiment in the crypto market.
Uniswap price currently auctions at $6.58. On February 15, the bulls reconquered the 8-day exponential moving average, providing a positive short-term outlook for the Ethereum-based exchange token.
The Relative Strength Index (RSI) is an indicator that is used to gauge kinetic potential of a trend. At the time of writing, the RSI shows bullish divergences between the consolidation phases at $5.43 (which occurred during UNI’s winter rally) and the current range low at $6.23. These bullish divergences indicate that UNI’s winter uptrend is still intact and ready to create the next leg up
Considering these factors, Uniswap price may be on pace to challenge liquidity levels above $10. The bullish scenario creates the potential for a 53% increase in market value.
UNI/USDT 1-Day Chart
The swing low at 5.23 can be used as an invalidation of the bullish thesis. If UNI breaks below this level, it could lead to a decline targeting liquidity levels as low as $4.44, resulting in a 32% decrease from UNI’s current price today.