The latest rebound in the UNI market has raised its expectations of extending its bullish move by at least 34 percent.
So says a pseudonymous analyst whose recent predictions for the newly-launched decentralized finance (DeFi) token have come accurate. The chartist in his Thursday tweet adjusted UNI/USD’s upside target to $6.43. The pair was trading near $4.91 at the time of this writing.
Trade setup presented by MacnBTC. Source: TradingView.com
The analyst envisioned UNI/USDT to retest $4.67 as its local support, primarily because of its ability to act as a firm price floor/ceiling regardless of the pair’s directional bias.
If the price bounces back from $4.67, it could prompt traders to open a long position toward $5.30 as the intra-range resistance target. Meanwhile, a strong push above the price ceiling could extend the breakout target near $6.43.
UNI Bullish Continuation
The analyst’s statement appeared as UNI/USDT broke out of a Descending Channel trend earlier today. Before the channel formed, the pair had rallied by a massive 5500 percent, a move that underwent a small consolidation trend as it matured into a full-fledged breakout.
UNI topped at $8.59 on September 18 but later started correcting lower on profit-taking sentiment. The downside move picked momentum as the rest of the cryptocurrency market tumbled, as well. The DeFi token fell to as low as $3.68 on September 22.
UNI bounces after forming a local bottom at $3.68. Source: TradingView.com
The token retreated from the low by as much as 35 percent amid renewed buying interest. Later, it broke above the Descending Channel pattern shown in the chart above, signaling more gains in the coming sessions ahead.
That is due to the technical description of a falling channel trend. An asset typically moves by as much as the height of the flagpole that formed before the pattern. So it appears, the said upward distance is $4.93. That means UNI could extend its upside by $4.93 from the point of the breakout.
The DeFi token’s breakout target, therefore, sits near $9.61.
Favorable On-Chain Outlook
Away from technicals, UNI is also trading amid a strong fundamental scenario.
According to data fetched by Santiment, big traders are constantly increasing their UNI holdings. Their study showed that the wallets holding 100k-1 million UNI tokens have surged from 80 to 123 in almost a week. At the same time, traders holding 1m-10m UNI tokens have increased from 25 to 34.
In Out Money Around Price chart. Source: Santiment
That partially explains why the DeFi token is among the only cryptocurrencies that have surged higher even as the rest of the market falls.
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