Can Ongoing Recovery Carry UNI Price to $8?

The Uniswap (UNI) price rebounded from $3.37 support with a double bottom pattern breakout. A gradual rise in volume activity along with the recovery rally indicates growth in underlying bullishness. If the buying pressure persists, the altcoin may jump above $8.

Key points:

The rising OBV indicator bolsters the double bottom pattern breakout.
The SHIB price soared 51% in the last five days.
The 24-hour trading volume in the Uniswap token is $309 Million, indicating an 115% gain.

Source-Tradingview

From mid-May to June, the UNI/USDT pair witnessed a minor consolidation between the $6 and $4.57. However, this range setup resulted in the bear’s favor as the coin price pierced through the $4.57 support.

The range breakdown indicated the continuation of a downward spiral and depreciated the UNI price by 26%. As a result, the downfall reached a low of $3.37 on June 14th. 

The following week, altcoin retested the new support multiple times, and the long-tail rejection attached to those candles suggested a high-demand zone.

Furthermore, the price action wobbling above $3.37 support showed the formation of a double bottom pattern. Moreover, on June 11th, the UNI price gave a bullish breakout from the $4.57 neckline aligned by high volume activity. 

Today, the UNI price retested the flipped support($4.57) and has surged 4.19%. The sustained buying should encourage buyers to breach the $6 resistance and rally 66% higher to the $8 mark.

However, the higher price rejection showcased on June 11th daily candle suggests supply pressure from above, which keeps a fake-out possibility on the cards. If that theory turns out to be true, the coin price will revisit $3.37.

Technical indicator

Along with the $4.57 breakout, the UNI price also poked a dynamic resistance of 20-day EMA. Thus, this EMA switched to valid support gives an extra edge to long traders.

The daily-RSI slope entered bullish territory indicates possibly sentiment building up on the Uniswap token.

Resistance levels- $7.5, $9.8
Support levels are $4.57 and $5 3.37