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Uniswap (UNI) token holders have plenty of reasons to celebrate now.
Uniswap is among the top gainers among cryptocurrencies, registering a 16.2% price increase over the past week
The token is now on a falling channel pattern but is expected to make a bullish run
Lowest possible support price for Uniswap is $4.8
The digital asset is one of the biggest gainers not only for the last 24 hours, but for the past seven days.
As of this writing, tracking from CoinGecko shows the token is trading at $6.37, enjoying a 12.5% gain in value since same time yesterday and a 16.2% increase for the past week.
Unlike the rest of the crypto pack, the Uniswap token seems to be keeping its head above water during this period of uncertainty and volatility for the digital assets space.
This seems a rather odd development, considering the token was stuck in a steady decline during the past five weeks.
It also makes it a bit difficult to assess whether or not the crypto is under any kind of pressure.
Some experts feel it is.
Uniswap On A Falling Channel Pattern
The five weeks that was mentioned earlier when Uniswap token was on a decline isn’t just a simple “period of red” for the crypto.
It was a falling channel pattern which is characterized by a bullish rally following the breaking of the overhead trend line.
While the token is enjoying significant gains with its current trading price, there is no clear guarantee that the anticipated bullish trend is already happening.
What is clear though is that 70% of all the gains the Uniswap token have made during its last recovery rally was obliterated by the recent crypto market correction.
It has put the cryptocurrency in a position where local support price stood at $5.27.
Where Is Uniswap Token Headed?
As of this writing, data indicate that Uniswap token’s hourly trading is on a small range. If the trend continues, there could be strong movement on its price on the coming days.
The crypto’s support range could consolidate at $5.00 to $4.8 while its resistance level could be seen to be from $6.9 to $8.1.
In crypto space, “support” refers to the level at which an asset’s price stops falling. “Resistance” refers to the range when an assets price stops increasing.
It is important to note that while a bullish rally can easily put Uniswap trading price to the $7 mark, the token is also at risk of hitting a price range below $5.
With that, it is now a waiting game for interested buyers who should keep a sharp eye for the pattern breakout.
UNI total market cap at $4.9 billion on the daily chart | Source: TradingView.com
Featured image from Cointribune, Chart: TradingView.com