Today, we're going to speak about Uniswap and where the price may go in 2022, as well as a breakout that's happening right now, so we're gonna talk about all that in today's article.
Uniswap (UNI) complete Overview & Future Price Prediction
So, looking at the Uniswap chart below for the last year or so, the market overall appears to be in great shape. I realize we've had a period of mostly dull choppy market activity, but it's been following the uptrend from last year. So we got this to go upward, and since then, Uniswap and a lot of other markets have been moving sideways.
Now, patterns like this, this wedge pattern that you see here, frequently serve as continuation patterns where you have the rise up, the sideways movement, and then, in this case, I expect to see Uniswap break out of this pattern and continue its uptrend later this year.
Now, there's no way of knowing when that will happen, but I would expect some upward movement from Uniswap and, of course, the rest of the crypto market in the next months. Of course, this implies that Bitcoin would cooperate since we know that many of these cryptos, such as Uniswap, follow Bitcoin's lead.
With that in mind, let's go ahead and take a look at the short-term price action, and I'll show you guys exactly what I'm looking at here, especially the breakout that we're seeing this week.
So there are a few things I wanna point out and the first is going to be this area right around $19. This is going to be critical for Uniswap to close above to flip this back to support. So you can see back here, it was supported, and then over the past few weeks, it has been serving as resistance, so we need to see Uniswap close the day above $19 to flip it to support.
And that's incredibly important because just because it's trading above $19 right now doesn't mean it's flipped it back to support.
To return it to support, we need a daily close above that level. Now, based on a trendline off of some of these highs, this area is also a confluence area.
You can see that we have a short-term trendline off of some of these highs back here, as well as this swing high and the last few weeks, throughout the previous few months. For Uniswap, this becomes a confluence region around $19, so if it can close above this area today, tomorrow, or whenever, it will flip the support and we might see a push higher.
Now, the next location I'd pay attention to is this spot up here near $22. And you can see that this region is also a confluence of resistance, as we have these lows and numerous highs, and this horizontal level also crosses with that all-time high trendline.
The trendline from the all-time high connects just around 22 to $23 right here. So that'll be a convergence of resistance, just as $19 is, so close over 19 and we may see Uniswap go further up here toward 22 to $23.
Now, since we're on the subject of short-term levels, let's take a look at what we may see if Uniswap breaks out of that trendline off of the all-time high.
We have numerous highs through this range, starting with $27 and moving up to $31, so those would be the main locations to watch over the next few weeks if we were to see if we could close above 19, move up to 22, and then break out from there.
But one thing that you have to keep in mind here, and there are a couple things I wanna point out. The first caveat is you have to understand the conditions that we're in.
We are no longer in conditions like we saw back here during this run-up. So obviously back here, we just saw day after day, week after week, just consistent gains during the bull market and we're no longer in those conditions.
The same thing applies to Bitcoin, Ethereum, etc. So we are very much in consolidation. So even if we get a break above 19, I don't expect the market to just take off and move higher like it did back here during this period because we're no longer in those types of conditions.
I think that we could get a breakout here out toward 22 as long as Bitcoin cooperates, and that brings me to the second caveat here and that is Bitcoin.
Bitcoin loves to fill in liquidation candles, liquidation wicks. And what I mean by that is if you look ever since early 2021, every single time we have a liquidation wick just like we got back here on December fourth, Bitcoin fills in that wick. It fills it in and even moves it a little bit lower before moving higher again.
So especially back here in May, you can see where we got the fill of this wick back here, move below it, and then the same thing back here before Bitcoin moved higher.
Now, same thing back here. We have the liquidation wick, Bitcoin moved to the bottom of that wick, and then also just below it before we saw the market move higher again.
So if we do see something similar this time around, then we could be lookin' at Bitcoin down toward 42, potentially $40,000, and a move like that is gonna weigh on cryptos like Uniswap.
It's not simply about looking at Uniswap alone. You're not going to be able to accomplish it. You must consider the overall market.
Where is Bitcoin? If Bitcoin were to test 42, $40,000, where could that put Uniswap?
So with regard to that, what I would watch for Bitcoin since we're on the topic, is a close below 45. This area has been critical support here over the past few weeks, so if we were to see Bitcoin close below this area around $45,000, that could be the indication that we're gonna get that move down toward this area, right around 40, maybe 42,000.
And again, if that happens, Uniswap is also going to suffer so you have to look at the entire market, including where Bitcoin is, and if it does close below 45, that could put some other cryptos in trouble.
Now alternatively, if we were to see Bitcoin move higher from 45 back up here toward 53 and close above this area, then that could also coincide with Uniswap breaking out from that 22-to-$23 area, in which case the game could change here and we could see the entire crypto market move higher. But until that happens, I am going to stay cautious, especially if Bitcoin closes below 45,000.
So looking back to Uniswap, if we do get that close above 19, as I said, I think there's a good chance, even if Bitcoin just stays sideways, that we get that push up into 22 to 23, but don't just expect the market to continue higher and just to go straight up like it did before because again, we're not in that environment.
We are still in a very sideways market. So I think that there is potential here in the short term for a move up toward 22, 23, as long as Bitcoin stays above 45,000.
If it doesn't and we see Uniswap stay below 19 down here, then we could just see more consolidation, potentially a move down here toward some of these lows and highs, and then that push higher.
Bottomline
So, in general, I enjoy the chart's appearance. And since we're on the subject of Uniswap's longer-term outlook, I'd want to end by looking at where this market may go in 2022 if we do have that breakout, and one way to do that is to look at the pattern's high, which is now around $30.
If you measure $30 from a possible breakout point later this year, you'll get a goal of roughly $50, so there are plenty of opportunities here, especially if Uniswap retests the $14 range.
Even from here, a climb from 22 to 23 to 50 later this year is still a huge gain, but even from $14, it's clearly much more. So I believe Uniswap has a lot of potential this year, and even in the short term, but you have to take market conditions into account.
Also, given what Bitcoin is doing, if it closes below 45, anticipate a little more pain for cryptos, but I do expect a breakout from Uniswap to the upside over the next few months, with a goal up around $50. So, I hope that this post has been useful for you.
