🚀 Uniswap Breaks Out — $7.50 Target in Sight as Monthly Green Looms
Uniswap breaks above declining trendline resistance, raising the odds of a $7.50 rally.
UNI's recent climb increases the likelihood of the DEX native token's first positive monthly return of the year.
Uniswap (UNI) trades at $6.56 on Monday as cryptocurrency market mood stabilizes. Decentralized Exchange (DEX) native token intraday gains exceed 6%, raising possibilities of breaking a four-month negative monthly return trend.
The 4-hour chart shows Uniswap's positive view, driven by micro and macro variables including a roughly 14% growth in derivatives market Open Interest (OI) to $400 million.
A 54% volume rise to $467 million in the last 24 hours suggests rising trader interest and activity as investors bet on UNI's price hike.
The rise in short position liquidations to $453,000 from $89,000 in 24 hours suggests a short squeeze. Traders purchase UNI to cover their holdings when Uniswap rises.
Uniswap's rise from May's low of $4.37 to the market rate of $6.56 in the previous few weeks should lead to its first positive monthly returns year-to-date.
Uniswap's advance was anchored by many buy indications targeting $7.50 barrier. During the Asian session, the MACD line (blue) passed above the signal line (red), validating the signal.
On May 18, the 4-hour SuperTrend indicator fell below UNI, signaling another purchase signal. This volatility indicator uses the Average True Range (ATR) as dynamic support and resistance. The least resistance route might rise substantially if the SuperTrend lags Uniswap's price, strengthening its bullish potential.
UNI broke above a crucial falling trendline on the 4-hour chart below. The DEX native token is well above the 4-hour 50-period Exponential Moving Average (EMA) at $6.19, the 100 EMA at $6.13, and the 200 EMA at 6.02.
A 4-hour to daily close above the trendline resistance-turned-support would encourage traders to buy UNI, expecting a rebound to seller congestion near $7.50, touched on May 5.
