Upward trends in price charts bode well for Uniswap. CoinGecko reports that over the past 30 days, the token’s value has increased by 17.6 percent. The currency appreciated by 6.5% in value throughout the course of the week.
As of this writing, UNI is still in an uptrend, and there are indications that the bullish momentum will continue, pushing the price of UNI into or over the $7 barrier mark.
UNI’s gains are only one example of the several cryptocurrencies that took advantage of the market turmoil caused by the recent CPI report.
Is the market getting carried away with its optimism, or can UNI’s positive momentum continue to the $7 resistance level?
The Unicorn Spell
CryptoQuant reports that the token’s exchange reserve numbers are on the rise. That people are getting ready to sell again is a gloomy sign.
During the September 21st UNI rally, the coin was rejected at the $7 price resistance level, providing evidence of this phenomenon.
Currently, the momentum indicator is at 0.062. This is barely above the 0 line of neutrality. The RSI indicator currently rests at 52.61 and 50.24 correspondingly, indicating a deceleration.
Even though the token’s movement is slowing, its predominant adherence to the XABCD shape may indicate more bullishness. However, the token has met a roadblock in its quest towards the $7 price area.
The recent rejection of the token at $6.774 will present a difficulty in the coming days.
Has The Adjustment Phase Begun?
Chaikin’s money flow indicator shows that the bulls continue to control the market. At a value of 0.02, the bulls can use this to generate more momentum and eventually push the price towards $7.
However, if bears seize control of the market, the $5.993 support line is their greatest defense against a possible reversal.
Market corrections are typical for both stocks and cryptocurrencies. As a result of the rising level of foreign exchange reserves, investors and traders should be prepared for potential volatility in the next days or weeks.
UNI market cap at $4.8 billion on the daily chart | Featured image from Forkast, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.