Uniswap’s positive trend in price charts is a sign of things to come. CoinGecko reports that over the past 30 days, the token’s value has increased by 17.6 percent. Over the course of the week, the currency saw a 6.5% increase in its value.
As at this writing, UNI continues to be in an uptrend. There are signs that the bullish momentum may continue and push the price for UNI towards or beyond the $7 barrier.
UNI’s gains are only one example of the several cryptocurrencies that took advantage of the market turmoil caused by the recent CPI report.
Is the market getting carried away with its optimism, or can UNI’s positive momentum continue to the $7 resistance level?
The Unicorn Spell
CryptoQuant reports that the token’s exchange reserve numbers are on the rise. This is an alarming sign that some people might be selling again.
The evidence for this phenomenon is that the currency was rejected at $7 during the September 21st UNI rally.
Momentum indicator currently stands at 0.0.062. It is just above the line of neutrality, which is 0 at this moment. Accordingly, the RSI indicator rests at 52.61 & 50.24, indicating a decrease.
Even though the token’s movement is slowing, its predominant adherence to the XABCD shape may indicate more bullishness. But, it is facing a major roadblock on its journey towards $7.
In the next days, there will be difficulties due to the rejection of the token valued at $6.774.
Is the Adjustment Phase Complete?
Chaikin’s money flow indicator shows that the bulls continue to control the market. This indicator can be used by bulls to increase momentum, and push the market towards $7 at a value of 0.02.
If bears take over the market, however, their best protection against a possible reverse is the $5.993 Support Line.
Both stocks and crypto currencies are susceptible to market corrections. Due to rising foreign exchange reserves investors and traders must be ready for volatility in the coming days or weeks.
Featured image from Forkast, Chart: TradingView.com| Featured image from Forkast, Chart: TradingView.com Disclaimer: This analysis is the author's opinion and should not necessarily be considered investment advice.