- UniSwap looks forward to a rally to $3.6 if the descending parallel channel resistance is shattered.
- UNI/USD is building the bullish outlook as reflected by the RSI’s gradual movement towards the midline.
UniSwap has in the recent past dominated the decentralized finance sector. However, the token is not performing well in terms of price action, but that seems to be the story for the majority of tokens in the ecosystem.
Data by DeFiPulse shows UniSwap leading the pack with roughly $2.7 billion in locked funds, representing a 23% dominance. Over the last 24 hours, the funds locked in the project declined by 1.5 %. UniSwap is followed closely by Maker with $1.9 billion while Wrapped Bitcoin comes third with approximately $1.3 billion in locked funds.
Meanwhile, UNI is teetering at $2.91 after a shallow bounce from the short term support at $2.8. The DeFi token\ has since October 8 lost ground within the confines of a descending parallel channel. Marginally above the price, the middle boundary of the channel caps movement.
If UniSwap pierces through the resistance mentioned above, chances for a new rally will become high. However, it is vital to have in mind obstacles that could delay the bullish outlook, including the 50 Simple Moving Average (SMA), the channel resistance in conjunction with the 100 SMA in the 4-hour timeframe.
UNU/USD 4-hour chart
For now, the path with the least hurdles is upwards as confirmed by the Relative Strength Index (RSI). To guarantee a safe passage to $3.6, buyers have to bring down the descending parallel channel resistance.
It is worth mentioning that the bullish outlook may be invalidated if the middle layer boundary of the channel remains intact. A bounce from the obstacle might extend under $0.28 and the channel support, kick starting another breakdown to $2.4.
UniSwap Intraday Levels
Spot rate: $2.9
Relative change: 0.048
Percentage change: 1.8%