Uniswap Price Renews Hope For 30% Breakout With Launch of UniswapX Beta Protocol – Crypto News – Crypto News
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Uniswap Price Renews Hope For 30% Breakout With Launch of UniswapX Beta Protocol – Crypto News

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Uniswap a decentralized exchange (DEX) ecosystemcould become one of the best-performing crypto assets this week, following an inverse head-and-shoulders (H&S) pattern breakout.

Up 15% over the last week, UNI is trading slightly above $6 with $219 million in trading volume rushing in. Uniswap is the world’s 19th largest cryptocurrency boasting $4.6 billion in market capitalization.

Will the Inverse Head-And-Shoulders Pattern Propel Uniswap to $7.5?

Uniswap has since mid-June sustained an impressive uptrend from monthly lows of $3.6 to July highs of $6.148. The trend reversal completed the formation of an inverse head-and-shoulders when bulls confirmed support at $4.8, calling for more exposure to UNI longs ahead of an expected breakout above the pattern’s neckline resistance at $5.73.

An inverse H&S pattern is a bullish signal that shows the Uniswap market is about to switch from a downtrend to an uptrend. The pattern appears on the chart like a person’s head and shoulders flipped upside down.

The head represents the lowest point and the shoulders are higher. The neckline is the resistance level that connects the tops of the shoulders.

Since Uniswap price has already validated the H&S pattern by breaking above the neckline, it confirms the pattern, and traders expect a rally.

Traders are expected to buy UNI at the breakout point, $5.73 in this case, and aim for a target price that is equal to the distance from the head to the neckline added to the breakout point, which as observed on the chart may propel Uniswap price 30% to $7.50.

USD/UNI daily chart | tradingview

For starters, Uniswap would be in the best position to rally to $7.50 if bulls hold support above $6. Extremely conservative traders may want to wait until UNI has confirmed the validity of this buyer congestion zone before triggering their buy orders.

In case of a reverse, it would be prudent to wait until Uniswap price bounces off the neckline resistance at $5.73, reinforced by the 200-day Exponential Moving Average (EMA) (in purple) at $5.665.

For now, the path of least resistance is imperative to the upside, with more traders willing to bet on another buy signal from the Moving Average Convergence Divergence (MACD) indicator. Usually, a bullish cross is characterized by the MACD line in blue flipping above the signal line.

The Money Flow Index (MFI) similarly adds credence to the bullish outlook indicating that the inflow of funds into UNI markets significantly surpasses the outflow volume. In other words, enhanced investor interest in the token powering one of crypto’s biggest DEX backs the anticipated 30% H&S breakout.

Uniswap Labs Debuts New Beta Protocol

The Uniswap development team announced the launch of a new beta protocol called UniswapX. According to an accompanying Twitter post, this is “a new permissionless, open-source (GPL) auction-based protocol for trading across AMMs and other liquidity sources.”

Uniswap believes this new offering will “give users more liquidity, better prices, MEV protection, and gas-free swapping.” On top of all these features, UniswapX users will incur any cost for failed transactions, not to mention the gas-free cross-chain swap expected to launch soon.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance ( CeFi), and the ever-evolving metaverse.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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