- Uniswap is back in the pennant formation as bulls hold the ground.
- UNI could be seen crossing the pennant inside, test the upper barrier.
- On thin liquidity, bulls could go for a blitzkrieg toward $6.
Uniswap (UNI) price was able on Wednesday to stay back in the pennant that has been managing the price action since the beginning of December. More important was the re-entry above the green ascending trendline from June. Where plenty of cryptocurrencies are printing the worst performance, UNI is still on an uptrend since this summer, judging from the higher lows.
Uniswap is still in an uptrend going against the overall trend
Uniswap price currently is a bit unmoved as the dust settles off the big shock move from the Bank of Japan (BoJ) that suddenly tweaked its yield curve control. With the public divided on what this means going forward, liquidity is starting to wear down as markets and trading desks are closing up shop.
However, UNI could be seen jumping higher, as thinner liquidity gives the bulls the upper hand. Price action could cover quite a lot of ground in a brief period. On the upside, the double cap with the red descending trend line and the 55-day Simple Moving Average (SMA) at $6 is the ideal candidate for the profit goal.
UNI/USD daily chart
Uniswap bulls need to trade away from the green ascending trend line as the risk of dropping back below it keeps building. The line in the sand to break is above $5.50. If that does not happen by the end of this week, risk will build for a fade and price action to slide back below the green ascending trend line and the low of this week towards $4.50 at the monthly S1 support level.