Uni Fake Breakout of trend line ! Be aware ! UNI has been trading in a clear uptrend on the 4h timeframe. The price has been respecting the ascending trendline and making higher lows. However, the price is now approaching a strong resistance level at $13.
The ascending trendline:
The ascending trendline is a bullish pattern that is characterized by two converging trendlines, one connecting lower highs and the other connecting higher lows. The price typically breaks out above the upper trendline, signaling a continuation of the uptrend.
The resistance level:
The resistance level is a price level at which the price is likely to stop rising and start falling. This is because there are a large number of sell orders at this level.
The fakeout:
The fakeout is a bearish pattern that is characterized by a sharp increase in price, followed by a quick reversal and fall. This pattern is often used by large market participants to trap retail traders and acquire liquidity at higher prices.
The bullish scenario:
The price breaks out above the resistance level at $13 and continues to rise. The first bullish target is $20.
The bearish scenario:
The price fails to break out above the resistance level at $13 and falls back to the trendline. The price then retests the trendline and breaks down below it, signaling a reversal of the uptrend.
Conclusion:
The UNI chart shows a bullish pattern. The price is approaching a strong resistance level. The outcome of this level will determine the future direction of the price. Investors should always do their own research before investing in any cryptocurrency.
