Uniswap will reach $135Timeframe : Weekly chart
Price Levels:
The current price is not explicitly labeled, but the chart shows a range from approximately $4 to $6.32 (based on the visible y-axis and the latest candlestick).
The price action spans from a low near $4 in late 2022 to a peak around $6.32 in early 2025, with a correction phase labeled.
Trend Overview:
2022-2023: The price starts around $4 and experiences a gradual uptrend with some volatility, consolidating between $4 and $5 for much of this period.
2024: A sharp upward move occurs, peaking near $6.32, followed by a correction phase.
Early 2025: The price is in a consolidation or correction phase, with the latest candlesticks showing a slight recovery.
2. Key Patterns and Annotations
Descending Triangle:
The chart features a descending triangle pattern, similar to the Ethereum chart you shared earlier.
Upper Resistance: A horizontal resistance line around $6.32 (the recent peak).
Lower Support: A descending trendline (sloping downward) that the price has been testing, currently near $4.50-$5.00.
The price is approaching the apex of the triangle, suggesting an impending breakout (upward or downward).
Correction Phase:
The chart labels a "Correction" phase after the peak at $6.32, where the price retraced to the $4.50-$5.00 range.
This correction likely reflects profit-taking or broader market pressure after the rally.
Breakout Prediction:
An upward arrow is drawn, indicating a potential breakout to the upside, possibly targeting the $6.32 resistance again or higher. This suggests optimism for a significant upward move.
3. Support and Resistance Levels
Support:
The $4.50-$5.00 level appears to be a strong support zone, as the price has bounced multiple times in this range during the correction.
If this support breaks, the next level could be around $4.00 (a psychological and historical support from 2022-2023).
Resistance:
The $6.32 level is a key resistance, marking the recent high. A break above this could signal a continuation of the prior uptrend.
Intermediate resistance might be around $5.50-$6.00, a prior consolidation zone.
4. Volume and Momentum (Not Visible but Inferred)
Volume bars are not clearly visible, but typical behavior suggests:
Volume likely increased during the rally to $6.32 and decreased during the correction as selling pressure eased.
A breakout would need a volume spike to confirm, especially if the price breaks above the descending trendline (around $5.50-$6.00).
Momentum indicators (e.g., RSI or MACD) could help determine if the price is oversold or showing bullish divergence, supporting a reversal.
5. Potential Scenarios
Bullish Breakout:
If UNISWAP breaks above the descending trendline (around $5.50-$6.00) with strong volume, it could confirm the breakout.
The target might be the $6.32 resistance, representing a ~20-25% move from the current $5.00 level, or potentially higher if momentum carries it past the prior peak.
This aligns with the upward arrow and suggests accumulation by larger players (e.g., whales) during the correction.
Bearish Breakdown:
If the price fails to hold the $4.50-$5.00 support and breaks below, it could signal a bearish continuation.
The next support at $4.00 could be tested, potentially leading to further downside.
Consolidation:
If the price remains within the triangle (between $4.50 and the descending trendline), it might continue to consolidate until a catalyst (e.g., market news, volume surge) triggers a move.
