Uniswap (UNI) price broke a confluence of short-term resistance levels and headed towards the $15.70 long-term resistance area.
Following the collapse of FTX, a popular narrative is that decentralized exchanges (DEXs) may experience growth and renewed interest in 2023. This can be seen as positive Uniswap news as Uniswap is the largest decentralized exchange.
Bitwise, an asset management firm with several crypto asset funds, argued that Uniswap could surpass Coinbase’s volume in 2023, as investors lose faith in centralized exchanges.
Uniswap price broke above the 406-day resistance line
Since hitting an all-time high of $45 in May 2021, Uniswap price has fallen below a long-term descending resistance line. The decline in June 2022 resulted in a minimum price of $3.33. Towards the end of the month, UNI price broke above the resistance line, indicating that the long-term correction may have come to an end.
However, the uptrend in UNI price has not sustained and is trading near the pre-breakout levels. In any case, if the upward momentum continues, the next long-term resistance lies at $15.70.
Despite the lack of bullish price action, the technical indicators are bullish. The weekly RSI is moving above 50 (green icon) for the first time since November 2021 (red icon). When combined with the breakout from the resistance line, this supports the possibility that the uptrend will continue.
Uniswap starts short-term rally
Technical analysis from the daily time frame tends to align with bullish readings from the weekly. UNI token price broke above the confluence of the resistance level on January 14, which was formed by the descending resistance line and the $6.30 resistance area. Later, it came back to verify it as support on Jan 18 (green icon), which initiated a strong uptrend in the last 24 hours.
The main resistance area is at $7.90. Since this is the 0.618 Fibonacci retracement resistance level, a movement above it would suggest that the rise is not a relief rally. In this case, an eventual move towards $15.70 would be likely.
It supports this price structure as the daily RSI is rising and has not generated any bearish divergence.
A daily close below the $6.30 area would invalidate this bullish analysis and suggest that UNI price could decline towards $5.
To conclude, Uniswap price analysis is most likely moving towards the $15.70 resistance area due to bullish readings from the weekly and daily time frames. ,
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