Uniswap’s [UNI] value reached a level not seen in almost five months, with a rapid 17.46% increase from $9.16 to $10.76 occurring in just an hour on Tuesday, November 12, shortly before the time of publication.
Throughout September and October, UNI had remained below the $8 resistance mark. However, this changed significantly on November 6, when the $9 range almost transformed into a support level. Following a period of consolidation, buyers once again pushed prices higher.
Uniswap Regains Support Around $9
Despite failing to sustain the $10 threshold after the sudden uptick, the daily chart suggests a potential continuation of the upward trend. The market structure appeared favorable, with the On-Balance Volume (OBV) indicating growing buying pressure through higher lows.
While the Relative Strength Index (RSI) stood at 68, no bearish divergence had emerged yet, indicating a possibility of further upward movement for Uniswap.
According to Fibonacci retracement levels, the next resistance points are projected at $9.93 and $11.29. However, UNI’s performance on longer timeframes has not been optimal, having retraced the entirety of the February surge by August.
Is a Retreat to $9 Expected by Traders?
Data sourced from MobChart displayed notable limit sell orders at $11 and $12, while buy orders at $9.2 and $9 appeared to garner attention, potentially leading to retests before another upward move.
Observing Uniswap’s daily price action chart, the breach beyond the 78.6% level at $8 signaled a bullish sentiment. It is plausible that the $11-$12 range will face testing in the upcoming weeks.
Disclaimer: The opinions expressed do not constitute financial, investment, or trading advice, but solely reflect the author’s perspective.