- Uniswap leads recovery in the market, posting incredible gains.
- Breaking the resistance at $40 could bolster UNI to new record highs.
Uniswap has given a blind eye to the ongoing correction in the market to post double-digit gains over the last 24 hours. The decentralized finance (Defi) token is among the cryptocurrencies that managed to weather down the volatility in the market with ease since the beginning of the week. At the moment, Uniswap teeters at $36 while bulls focus on breaking above $40.
Before the breakout, Uniswap had settled on top of crucial support, highlighted at $30. A ranging channel controlled price action for a short period ahead of the ongoing bullish momentum. Several broken resistance levels set the precedence for the bulls to take control.
Meanwhile, all the short-term technical levels and indicate that bulls are comfortably in control. For example, the Moving Average Convergence Divergence (MACD) hints at the uptrend remaining intact in the short-term.
As the MACD crosses into the positive region, bulls are bound to tighten the grip on the trend. Moreover, the MACD line (blue) has crossed above the signal line, reinforcing the bullish outlook.
UNI/USD four-hour chart
The Relative Strength Index (RSI) is leaning to the bullish camp after gradually recovering from the oversold area. Movement into the overbought region would encourage more buyers to join the market, pushing Uniswap beyond $40. Trading above $40 will also trigger the fear of missing out (FOMO), bolstering UNI toward $50.
Uniswap intraday levels
Spot rate: $36.8
Support: 50 SMA, 100 SMA and $30
Resistance: $38 and $40