Analyst predicts strong rally for Uniswap (UNI) based on ascending chart pattern

Cryptocurrency analyst Aaryamann Shrivastava has made a bullish prediction for the future of Uniswap (UNI). According to the analyst, the cryptocurrency is on the verge of breaking out of a chart pattern that could trigger a significant rally. According to Shrivastava, Uniswap is trading within an ascending triangle pattern. Therefore, a breakout from this pattern could lead to a substantial rally in the coming days.

According to technical analysis, Uniswap price has formed two ascending bottoms and three roughly equal tops since the beginning of August. The combination of these swing points, when connected by a trendline, reveals an ascending triangle pattern on the daily chart, which is known for its bullish bias.

“The ascending triangle pattern usually indicates an uptrend, and we are seeing consistent signs that UNI is ready to move in that direction,” Shrivastava said.

Currently, the price of UNI is hovering around $6.86, marking a 1.75% increase from the previous day. The key to confirming this rally, according to the analyst, will be a breakout of the weekly resistance level of $7.06. If the price closes above this level, the analyst predicts that UNI could reach the $9.38 mark. This would be a potential increase of 35% from the current value.

However, Shrivastava warns of possible intermediate resistance at $8.19, where investors may opt to take some of their profits.

“Although there is a key resistance at $8.19, technical indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) are above neutral levels, which suggests that a downturn may be unlikely,” the analyst added.

Uniswap Price Prediction

In addition to the chart analysis, Shrivastava highlighted on-chain data that reinforces his bullish forecast. According to information from Santiment, Uniswap’s Exchange Flow Balance, which measures the net flow of tokens into and out of exchanges, has seen a significant drop in recent days, suggesting less selling pressure.

“Between September 4th and 5th, the net balance dropped from 12,250 to -1.85 million, indicating that more tokens are being withdrawn from exchanges and accumulated by investors,” he explained.

This movement was accompanied by a 4.7% drop in the supply of UNI on exchanges, which, according to the analyst, is a sign of investor confidence in the asset.

“When holders withdraw their tokens from exchanges and move them to cold wallets, it usually reflects an expectation of future appreciation,” Shrivastava said.

While the outlook looks promising, Shrivastava warned that a breakout of the triangle’s ascending trendline could signal a reversal.

“If UNI closes below $5.54, the scenario becomes negative, and we could see a drop of up to 16%, taking the price to the low of $4.70, registered on August 5,” warned the analyst.

Despite this potential risk, Aaryamann Shrivastava’s forecast remains largely bullish, with the expectation that Uniswap could break through its resistances and begin a new phase of significant appreciation in the coming months. For investors, monitoring the $7.06 and $5.54 levels will be crucial to determine the next price movements.