The Uniswap (UNI) price has broken out from a confluence of short-term resistance levels and is heading toward the $15.70 long-term resistance area.
Following the FTX collapse, a popular narrative is that decentralized exchanges (DEX) could experience growth and renewed interest in 2023. This can be seen as positive Uniswap news since Uniswap is the largest decentralized exchange.
Bitwise, an asset management firm with several crypto asset funds, argued that Uniswap could surpass the volume of Coinbase in 2023, since investors have lost faith in centralized exchanges.
Uniswap Price Breaks out From 406-Day Resistance Line
The Uniswap price had decreased below a long-term descending resistance line since reaching an all-time high price of $45 in May 2021. The downward movement led to a minimum price of $3.33 in June 2022. By the end of the month, the UNI price broke out from the resistance line, indicating that the long-term correction might have ended.
However, the UNI price has not sustained its upward movement and is close to its pre-breakout levels. In any case, if the upward movement continues, the next long-term resistance would be at $15.70.
Despite the lack of bullish price action, technical indicators are bullish. The weekly RSI is moving above 50 (green icon) for the first time since Nov. 2021 (red icon). When combined with the breakout from the resistance line, this supports the possibility that the upward movement will continue.
Uniswap Begins Short-Term Rally
The technical analysis from the daily time frame aligns with the bullish readings from the weekly one. The UNI token price broke out from a confluence of resistance levels on Jan. 14, created by a descending resistance line and the $6.30 resistance area. Afterward, it returned to validate it as support on Jan 18 (green icon), initiating a strong bounce over the past 24 hours.
The main resistance area is at $7.90. Since this is the 0.618 Fib retracement resistance level, a movement above it would suggest that the increase is not a relief rally. In this case, an eventual movement toward $15.70 would be likely.
Since the daily RSI is increasing and has not generated any bearish divergence, it supports this price outline.
A daily close below the $6.30 area would invalidate this bullish analysis and suggest that the UNI price may fall to $5.
To conclude, the most likely Uniswap price analysis is an increase toward the $15.70 resistance area due to bullish readings from the weekly and daily time frames A daily close below $6.30 would put this prediction at risk and instead suggest that the $5 level will be tested again.
For BeInCrypto’s latest crypto market analysis, click here.
The post Uniswap (UNI) Price Will Flourish in 2023 Claims This Fund Manager appeared first on BeInCrypto.