- Uniswap price has dipped below the triple bottom setup at $16.72, collecting sell-side liquidity.
- A swift recovery above this barrier will likely trigger a 20% run-up to $19.94.
- A breakdown of the $16.07 support level will invalidate the bullish thesis.
Uniswap price is in a perfect position to kick-start a massive uptrend as it collected the sell-stop liquidity resting below a crucial support level. Therefore, a quick recovery will likely catalyze a move higher.
Uniswap price eyes higher high
Uniswap price tagged the $16.72 support level thrice between December 26 and 31, 2021, creating the triple bottom pattern. This technical formation is a reversal setup and indicates the start of an uptrend.
However, due to the January 5 flash crash, Uniswap price swept below $16.72, collecting the sell-stop liquidity resting below it. Market makers employ this move to engineer liquidity before kick-starting a new uptrend.
In this 30% rally, UNI will face the first hurdle – 50-day Simple Moving Average (SMA) at $17.98. The bulls need to overcome this blockade to reach the $19.94 resistance barrier, where Uniswap price set up a double top. In some cases, the altcoin could retest the said barrier or sweep above it to collect the liquidity.
UNI/USDT 4-hour chart
While things are looking up for Uniswap price, a failure to stay above the $16.72 support level will indicate a weak buying pressure. Such a development could lead UNI to retest the $16.07 barrier, where bulls can make another comeback.
However, a four-hour candlestick close below $16.07 will create a lower low, invalidating the bullish thesis. In this case, Uniswap price could slide lower and potentially retest the $13.88 barrier.