Uniswap’s latest chart (UNI) suggests investors should be ready for correction after gaining nearly 20% over the past week.
Is a 45% UNI price crash going forward?
UNI’s price has been trending upward since mid-June within what appears to be a “rising wedge,” which traditional analysts view as a bearish reverse pattern due to its history of luring bulls to buy false bounces.
Therefore, rising wedges dissolve after the price breaks below the lower trend. Traders typically calculate the lowering target of a rising wedge by subtracting the distance between its upper and lower trend from the breaking point.
That puts UNI’s downside target at $ 3.8 by September 2022, less than 45% of the July 15 price if the break starts near $ 6.52. However, the target would change up to $ 4.65 if the break originated at the apex, i.e., where the wedge’s trends converge, resulting in a 32.25% drop in the July 15 price.
Interestingly, a rising wedge also formed between February and April. The pattern broke a 65% upward move, with a broader 70% price drop that took the value of UNI to $ 3.56 per unit from around $ 12.50.
UNI price bullish catalysts
At the same time, Uniswap has also painted an inverted head and shoulders (IH&S) pattern with a top target sitting around $ 9.50, up 40% from current price levels.
The bullish arrangement has one fundamental support: Robinhood.
Related: Crypto exchange FTX is looking to get Robinhood: Report
In particular, the U.S. non-quota trading app announced on July 14 that it has added Uniswap to its cryptocurrency portfolio for its 22.8 million retail investors.
– Robinhood (@RobinhoodApp) July 14, 2022
Robinhood’s list does not guarantee an extended bull, however, as the market has witnessed in the case of Shiba Inu (SHIB).
In particular, the company’s decision to list SHIB helped the token rise by nearly 20% on April 12 but could not help it keep its gains. SHIB’s price has crashed by almost 60% since its Robinhood listing.
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