UNI reached a new high of $13.09 at Binance, with bulls probably aiming high of $20 in the short term
Uniswap (UNI) rose to a new all-time high of $13.09 on Monday morning, continuing the massive surge of the Decentralized Finance Token (DeFi) over the weekend.
When the UNI/USD currency pair reached its milestone, Ethereum (ETH) broke recent resistance levels to reach a new all-time high of $1,467.
At the time of writing, both the ETH and UNI have retreated, although they Bitcoin System maintain the prospect of an upward trend. Currently the UNI is trading around $12.03 while the ETH/USD pair is trying to recover after falling to lows of $1,400.
The Uniswap bulls are looking to back off over $12.00. Meanwhile, technical indicators suggest new advantages if prices rise to intraday highs.
On the 4-hour chart, the price of UNI remains above 20-day and 50-day EMAs despite consecutive red candles in the last two sessions. However, as the candlesticks show, the bulls are aggressively buying the fall, which is probably caused by increased profit making after the token has reached its new historic high.
UNI/USD 4 hour chart. Source: TradingView
While the RSI on the above chart is pointing down to suggest that short-term downward pressure also remains, the overall picture is bullish. In addition to the trend of the RSI indicator within overbought conditions, the UNI/USD currency pair also appears strong above the average trend line of an upward parallel channel.
If bulls can continue their aggressive purchases, there is a possibility that the next target will be to test the upper limit of the channel again. This means taking prices near the $13.00 resistance line. A successful breakout could put the UNI/USD pair into price discovery territory.
Here, the psychological targets are between $15.00 and $20.00 in a strong uptrend.
The hourly chart suggests that a robust support zone has formed near $11.50 with the RSI and MACD positive. The RSI is inverted and looking to climb further away from the mid-point line. MACD, on the other hand, is within the bullish zone and suggests a hidden formation of bullish divergence as the bear’s strength begins to weaken.
To strengthen the bullish trend, bulls need to reach a daily close above $12.50. Favorable winds around this price level will allow bulls to explore higher as the UNI/USD currency pair reaches price discovery mode.
On the contrary, a pullback from current price levels could cause UNI to fall to $11.72 (20-day MME on the hourly chart).
Additional support is in the two exponential moving averages on the 4-hour chart – the 20-day MME ($10.33) and 50-day MME ($9.19).