Uniswap overcame the resistance

On a weekly timeframe, there has been steady growth of the Uniswap token since October 2023, starting with a price rebound from the long-term horizontal support area. The following month, the upward movement led to a breakout of the downward resistance line, which held for 480 days.

At the beginning of 2024, UNI conducted several retests and then overcame the horizontal resistance area, rising to the maximum marked last week around $12.86. After that, there was a slight decrease in the price.

The Relative Strength Index (RSI) on the weekly chart confirms the growth. The bullish divergence of the RSI has foreshadowed an upward movement, and the RSI continues its uptrend, having just exceeded the 70 mark. Currently, there are no signs of a bearish divergence that could break the current uptrend.

UNI Forecast: what to expect from a bullish breakout

The daily chart is consistent with the weekly chart and also indicates a bullish outlook.

According to Elliott's wave analysis, the most likely scenario is continued growth. UNI is in the third wave of the five-wave upward movement (represented by white), and the black line represents the analysis of the sub-waves, indicating the fourth sub-wave.

If this analysis is correct, Uniswap will start a new bullish move after the current correction is completed. This may lead to the price reaching the next resistance level at $16.10, which corresponds to the ratio of the first and third waves in a ratio of 1:1.61 and implies an increase of 50%.

The daily RSI also confirms this scenario, as the indicator continues to grow and is above the 70 mark.

Despite the bullish forecast, the inability of UNI to overcome the maximum around $12.10 may lead to a drop of almost 30% to the nearest support level around $7.80.