Uniswap Price Analysis – outlook remains bullish

The Uniswap (UNI) market cap currently stands at US$7.3 billion, ranking UNI 14thth on the Brave New Coin market cap table, with US$2.2 billion in trading volume over the past 24 hours. The DCR price is up 20.51% in the last 7 days.

About Uniswap

Uniswap is a Decentralized Exchange (DEX) protocol founded by Hayden Adams in 2018. The DEX enables the trading of ERC-20 tokens, in a non-custodial manner, through a software or hardware wallet. Uniswap released a governance token (UNI) via airdrop on September 16th, 2020.

DEX trading volumes have increased rapidly in recent months. Uniswap (pink) has held a majority of that volume, with over US$9 billion this week alone. Despite increasing competition, Uniswap still dominants with a 50.1% share of all decentralized exchange trading volume.Source: Dune Analytics

Technical Analysis

Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

UNI has a limited trading history and needs to be analyzed on lower timeframes, as opposed to the daily chart. On the four-hour timeframe, the 50-period Exponential Moving Average (EMA) and 200-period EMA crossed bullish on December 17th, which has resulted in a 750% increase. Upside resistance while in price discovery, based on monthly pivots, sits at US$30 and US$40.

Watch full UNI Technical Analysis on YouTube

• Price is currently nearly 1.3x from the 200-period EMA and touched the 200-period EMA this week, the first support tap since January 11th. If the horizontal support fails, the next significant support sits at US$15 based on VPVR and monthly pivots. Additionally, there are no current bearish divergences on volume or RSI to suggest weakening bullish momentum.

• Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

• Cloud metrics on the four-hour timeframe, with doubled settings (20/60/120/30) for more accurate signals, are bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above the Cloud and above the current spot price. The trend will remain bullish so long as the spot price remains above the Cloud, currently at US$20. A clearer long entry signal should arise once price falls below and then back above the Cloud.

• The UNI/BTC pair nearly hit all-time highs in early February. Trend metrics on the four hour timeframe are now neutral as price sits above the 200-period EMA but within the Cloud. Up resistance, based on monthly pivots, sits at 72,000 sats. Cloud and VPVR support sits at 45,000 sats with additional VPVR support at 30,000 sats. Additionally, there are no current bearish divergences on volume or RSI to suggest weakening bullish momentum.