UNI, the native cryptocurrency of the decentralized cryptocurrency Uniswap, bounced 9.72% during Monday’s U.S. trading session to reach $7.87. The buying pressure, evident by the increasing trading volume, received additional momentum from the broader market recovery as Bitcoin reclaimed $108,000. The daily chart displays the formation of a traditional reversal pattern known as a rounding bottom, indicating the potential for a $10 breakout.
According to CoinGecko, Uniswap’s market cap is at $4.94 billion, while the 24-hour trading volume is at $564 Million.
Rounding Bottom Pattern Prepares UNI price for $10 breakout
Over the past two months, the Uniswap price has showcased a sustained recovery from a $4.50 bottom support to a current trading value of $7.88, accounting for a 73% gain. The bullish upswing formed a couple of higher lows (HL) and higher highs (HH) in the daily chart, suggesting a surge in buying pressure during pullbacks.
With today’s price jump, the UNI price showed another high-low (HL) at the combined support of $7 and the 50-day exponential moving average, reinforcing the typical ‘buy-the-dip’ sentiment in the market. If the daily candle closes above the 200-day EMA, buyers could push a 32.5% surge to challenge the $10.36 resistance.
The potential surge will reveal the formation of a rounding bottom pattern. This chart displays a saucer- or U-shaped recovery at a major support level. Historically, the rounding bottom has been identified at major market bottoms, as it signals an accumulation phase in prices before a significant breakout occurs.
Thus, the Uniswap price is likely to breach the $10.36 resistance and bolster a rally to the $16 mark.
Also Read: BTC Price Setup: 2 Key Liquidity Zones Point to $111K Breakout
Uniswap’s Weekly Chart Analysis Shows Major Accumulation
Uniswap’s analysis of the weekly price chart shows a prolonged consolidation trend since February 2022. Amid the lateral trend, the coin price rebounded several times from an ascending support trendline that offers a dynamic accumulation zone for buyers.
So far, each reversal from this support has led to a recovery rally higher than the previous one. If history repeats, the coin price could surpass the $16 resistance and chase a major resistance of $195.
A bullish breakout from resistance will release UNI from this sideways trend.
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