Uniswap (UNI) is gaining impressive momentum, reigniting hopes for a continued uptrend. As the token gains strength, its next target could be the $16.9 mark, a critical level that could pave the way for larger gains. With momentum building, the question is whether UNI can break through this resistance and push to new heights.
The goal of this article is to analyze Uniswap’s recent rally, focusing on its ability to break through the key resistance level of $16.9. This analysis will determine whether UNI is prepared for further gains or challenges in breaking through this critical price point by examining the factors driving UNI’s rise, including technical indicators and market sentiment.
Study recent momentum increase at UNI
The 4-hour chart is showing strong bullish strength and is trying to break out of the consolidation area. The token is trading above the 100-day simple moving average (SMA), targeting the key resistance level of $16.9, indicating the potential for additional upside movement if it maintains its position above the SMA.
A check of the RSI on the 4-hours frame shows that the RSI has once again risen above the 61% threshold after seeing a decline to 56% indicating a return of buying pressure, reflecting renewed bullish movement in the market. A sustained rise indicates strong overbought conditions, indicating strong demand and the potential for further price growth.
Also, the daily chart shows UNI’s strong bullish momentum, highlighted by the formation of a positive candlestick pattern as the price bounces, indicating the potential for further gains. Its position above the simple moving average reinforces the positive trend, indicating steady strength. As UNI continues its ascent, it inspires growing market confidence and sets the stage for an extended rally.
Finally, the Relative Strength Index on the daily chart recently reached the 70% level, indicating that Uniswap has entered the overbought zone, reflecting strong bullish sentiment. While this indicates an extended uptrend, it also increases the risk of a pullback if buying pressure becomes excessive.
Will Uniswap reach new heights? Track towards $16.9
Uniswap is showing strong bullish strength, with the $16.9 level acting as a key resistance level to pay attention to. If the token maintains its upward trajectory, it may test this level soon. A successful break above $16.9 could open the door to new highs, paving the way for gains and a potential rally towards higher price targets.
However, if UNI fails to maintain its momentum, a pullback or consolidation may follow, which could push the price towards the $11.8 support level. A decisive break below this level could lead to further declines, with the next support area at $10.3 or lower.