The price of Uniswap can go bullish soon through the horizontal breakout, yet the death crossover of UNI and a massive deposit by the team can act as bearish signals.
The cryptocurrency market oscillated in the middle of the week, with Bitcoin starting at $63,424 before moving to $68,252. In this wave, Uniswap had a bearish breakdown from the $7 support level and then rebounded 10% to $7. 734, thus increasing its market capitalization to $4.63 million. However, there are concerns that a correction has occurred recently due to a massive UNI token deposit from a Uniswap team wallet.
Key Level breaks exposes Uniswap support
Recent data shows that a Uniswap team wallet deposited 1.9 million in UNI tokens, with an aggregate worth of approximately $19.15 million. This major transaction occurred earlier today.
The wallet got 9 million UNI tokens in May 2020 from Uniswap and sold off 7.17 million. UNI for little more than $58.5 million since 4 July 2024. It now holds 1.84 million UNI, which is equivalent to approximately $14 million being held in the reserve. It is easily convertible and can be immediately traded.
At the time of writing the price of UNI $7.77 and its up over 2% The UNI price has shown constant support at a critical point of accumulation, but the massive transaction could portend a downfall. However, The relative strength index of UNI shows that it is about to rebound from this strong support level.
Uniswap Price Analysis: Triangle trading pattern
Looking at Uniswap’s daily chart, the price oscillates within two moving lines that are approaching each other, creating a triangle formation. A lower trendline of support started on October 23, and an upper resistance trendline on May 24 was observed.
This chart arrangement usually results in a lateral movement of the price as it forms a base before a new trend. On July 25, the UNI price tested the lower trendline and could be the starting point for a bull cycle within the triangle formation.
The daily RSI is moving towards the midline, which reached 50%, indicating the strengthening of the market sentiment. Previously, it oscillated between the triangle resistance level at $9.25, hinting that the actual figure could be 18.25%.
The big contribution made by the Uniswap team to UNI tokens can do the trick and assure investors that this time it is really different. The bearish pressure is depicted by the last crossover of death situated below the 50-day EMA beneath the 200-day EMA that can offer further momentum bear and break the triangle pattern.
A drop below the lower trendline will disrupt the bullish sentiment and may likely drag the price down to $5.
Disclaimer: Cryptocurrency investments are considered high-risk and may result in a lack of capital; the facts provided are widespread, and beginners are not advised to spend money on shares.
