UNI price has jumped 10% in 24 hours, but bulls need to hold above the lower boundary of an ascending channel to keep bears out
Uniswap (UNI) has seen the price of its governance token UNI surge nearly 11% in the past 24 hours, with the value going up more than 5% in the past hour. The token currently trades at $3.30 against the US dollar and could spike significantly in the next few days.
However, the likelihood of increased volatility this coming week could also contribute to downward pressure likely to dump prices.
The bearish outlook for the UNI price could be linked to the expiry of the incentive program provided by liquidity mining.
As we have covered here, the market could see nearly $1.2 billion worth of UNI become available for trading as yield farming comes to an end.
UNI prices are up to $3.30 again after dipping to lows of $1.76 earlier this month. Driven by massive liquidity mining gains, the price has jumped more than 35% over the past seven days and over 80% since the dump to the level of $1.76.
The price remains capped by the upper boundary of an ascending parallel channel formed since the beginning of the month. If the bulls maintain the upside momentum and break above the limit, the pressure could see bulls retest prices near $4.00.
However, a flip in momentum could see prices drop to the midline of the channel. The lower boundary and the 20-day simple moving average at $2.60 provide further support.
UNI/USD 4-hour chart
The technical perspective on the 4-hour chart suggests that the bulls still hold the advantage as they look to strengthen above a weekly resistance line formed since mid-October. The price is printing a higher candlestick and prices are comfortably above the 20-SMA and 50-SMA.
The ascending trendline also provides a support barrier that could see the upside push the UNI price higher in the short term. Meanwhile, the RSI is pointing upwards towards overbought territory at 65.00, but there’s plenty of room for bulls to move higher.
A bearish reversal will, however, be validated if the momentum shifts and the bears push prices below the moving averages and the lower boundary of the ascending channel. The main goal is to keep prices above the 20-SMA at $3.03. Beneath the lower limit of the channel, UNI/USD will likely retest the 50-SMA at $2.70 and possibly the 100-SMA at $2.40. The long term support is at the supply wall near $1.76.
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