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Uniswap’s (UNI) bullish run from the $10.5 support level peaked at the $17 price zone. Since then, UNI has been retraced slowly and recently re-tested the new support level at $13.5.
This presents a good opportunity for new buy opportunities to leverage UNI’s upward trend with double digits gains available.
Uniswap: The Unicorn of Decentralized Exchanges (DEXs)
Uniswap is one of the foremost decentralized exchanges, running on the Ethereum blockchain. Uniswap functions as an automated market maker (AMM), facilitating the decentralized exchange of crypto tokens using liquidity pools rather than the usual market order books.
UNI serves as the native token of Uniswap with users able to earn rewards in UNI and participate in governance activities.
According to numbers from Uniswap, the DEX has recorded over $1.7 trillion in trade volume with over 220 Million all time trades. This easily places Uniswap as the biggest DEX in crypto by trading volume.
Uniswap keeps token trading automated and completely decentralized while improving trading efficiency with multiple integrations that allow traders, developers, and liquidity providers participate together in an open and accessible financial marketplace.
Capital Inflows Can Drive Long Opportunity
The Chaikin Money Flow (CMF) climbed above the zero level over the past day and even though it dipped slightly, it registered a reading of +0.05 to highlight the injection of new capital in the short term.
This could flip the short term trend from bearish to bullish, if the Relative Strength Index (RSI) moves above the neutral 50.
New buyers can wait for a bullish candle close above the support level on the four-hour timeframe before opening a long position. Potential target for the long trade will be $16-$17 for 18-22% gains.
Buy levels to consider
Support Level: $13.5
Resistance Level: $16.9
Take Profit: $16-$16.5
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
