2024 - First recovery in DeFi sector after lending exodus

Course (UNI): $6.52 (previous week: $5.73)
Short-term resistances/goals: $6.59/6.83, $7.55, $8.16, $9.12, $10.00, $11.27, $12.37, $13.15, $14.40, 15 $.85, $16.71, $19.33
Short-term supports: $5.65, $5.25, $4.60, $3.67, $3.35, $3.00, $1.90

Uniswap Recap

The price of the decentralized exchange Uniswap (UNI) has been able to recover noticeably since the low for the year at USD 3.35 and gradually break away from the strong support zone between USD 3.00 and USD 4.50 to the north.
Uniswap has recently benefited from increasing global regulation. The trading volume and in particular the profit of Uniswap increased significantly in the last few months.
The UNI price also benefited from this development and is currently trading at USD 6.52, a good 84 percent above the low for the year.
Despite one SEC investigation of Uniswap, investors seem to have increasing confidence in the largest decentralized crypto exchange.
At the turn of the year, Uniswap also opened up to Polygon (MATIC) as an additional partner, which in perspective may also have been a smart move.
In the short term, the UNI price must now stabilize above USD 5.65. A dynamic pullback below this support could result in a false breakout on the upside and push UNI price back towards $4.60.
A breakout above the historical high at USD 6.59 activates the next target at USD 7.55.

After the UNI price tried several times to break through the turquoise resistance zone in the last few trading weeks, a new breakout attempt is currently underway.
The daily chart shows a so-called inverse shoulder-head-shoulders formation (SKS), which activates medium-term price targets in the area of USD 9.12 when it breaks out of the sloping blue resistance channel.
If the breakout above USD 6.59 is successful and the blue channel is also exited upwards, the horizontal resist at USD 7.55 will first come into focus.
If this price mark is broken through without any notable setbacks, the recovery will expand to around USD 8.16. The first investors are likely to want to make a profit here.
If the UNI price subsequently stabilizes above USD 6.59, the next wave of recovery should lead to the USD 9.12 zone. In addition to the horizontal resistance and the target area of the inverse SKS, the EMA200 (blue) also runs here in the daily chart.
The Uniswap course is likely to fail here on the first attempt.

Only when this price mark is also exceeded by the daily closing price does the recovery movement expand in the direction of USD 10.00.
If the bull camp can then generate enough purchasing power and recapture this psychologically important price mark, a further price increase towards USD 11.27 is to be planned in the medium term. However, this mark is only a milestone on the way towards the old historical highs from February and March of this year.
From the current perspective, the area between USD 12.37 and USD 13.15 represents the first important higher-level target zone.
Here the UNI course should bounce off again. The light blue zone between USD 13.80 and USD 14.40 only comes into the focus of investors when the higher-level 23 Fibonacci retracement of the entire downward movement is overcome.
The old edge from January 2022 runs in this area. If this area is also breached upwards in the coming months, the chart picture will brighten up and further price targets at USD 15.82 and USD 16.71 will come into the eyes of investors .
This means that the maximum bullish price target for the next few months of trading would have been almost reached. From the current chart view, the maximum target can be found in the area of USD 19.33. In addition to an important horizontal resistance, there is also the 38 Fibonacci retracement of the higher-level movement.

The bears also did a great job at Uniswap and sent the UNI course south by 92 percent at the top.
Currently, however, the seller side seems to lack the strength for a new sale.
The seller must do everything in the short term to cap the price at USD 6.59, but at a maximum of USD 6.83.
If the Uni price turns south again and subsequently falls back below USD 5.65, the consolidation initially extends to the daily lows of the last trading day at USD 5.25.
If this support mark is dynamically undercut, a relapse to the strong support at USD 4.60 is out of the question. In addition to the last intermediate low from June 30 of the previous month, the supertrend and the 38 Fibonacci retracement of the last bottoming movement are also running here. The bulls will do everything possible to use this support level for fresh buying.

However, if the overall market also comes under significant pressure and Uniswap slips below this strong support for a long time, this would be rated very bearish. As a result, the UNI price should immediately break away in the direction of USD 4.13. The last emergency nail can be found here with the 23 Fibonacci retracement of the current movement.
If Uniswap does not turn north here, the price should continue to fall and target the USD 3.66 mark. If this last support before the low for the year also fails, the downward movement extends to USD 3.35.
If the bulls give up this support as well, the lower edge of the red accumulation zone at USD 3.00 will come into focus.
Once again, the buyer side is likely to become active here.
If the overall market continues to come under selling pressure in the coming months and the USD 3.00 is permanently abandoned, a capitulation down to USD 1.90, the current all-time low, is to be planned.
From the current point of view, however, a sell-off in these price regions is not to be expected. Investors can use pullbacks towards $5.65 to buy, or procyclically long a breakout above $6.83.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 1.00.

Do you want to buy cryptocurrencies?

eToro offers investors, from beginners to experts, a comprehensive crypto trading experience on a powerful yet easy-to-use platform.