Uniswap (UNI) crumbled from a prolonged-term support level on January 19, but has shown several bullish signs inside a bullish pattern.

UNI has been sliding afterward May 1, when it had scarcely realized an all-time strong price of $45. In the period between May and December, it reboundped at the $15 horizontal field and attempted to initiate several ascending developments.

After all, they were all unsuccessful and UNI crumbled on Jan. 19, 2021 (red icon).

So far, it has realized a bottom of $7.51 on Feb. 22, that amounted to a decrease of 83% afterward the all-time high.

The next closest support field is at $5. Previously, the level had not been realized afterward Jan. 2021. 

UNI Decrease
Chart By TradingView

UNI creates bullish pattern

The daily chart is considerably more bullish, afterward it shows that UNI is exchanging inside a weakening wedge. The plunging wedge is considered a bullish pattern, meaning that a breakout from it would be the most likely scenario.

In addition to this, both the MACD and RSI have genepriced very relevant bullish divergences (green lines). Such divergences very often precede bullish trend retractions. Therefore, when combined with the bullish wedge, this suggests that an UNI breakout is the most likely scenario.

If one occurs, the closest resistance range would be at $19.50. This is the 0.5 Fib retracement resistance level and a horizontal resistance range.

UNI Wedge
Chart By TradingView

Wave count analysis

Cryptocurrency trader@TheTradingHubb stated that UNI is mired in a corrective pattern, that means which a prolonged-term ascending progress is likely to folflat.

UNI correction
Source: Twitter

It is possible that the descending change afterward the all-time high is an A-B-C corrective structure, in that waves A:C have close to a 1:0.618 ratio. The sub-wave count is given in black.

Wave C has developed into an ending diagonal, that is noted by the shape of the weakening wedge. Such patterns are often succeeded by a sharp breakout and ascending progress. 

Therefore, it supports the readings and the rate action from the daily time-frame.

Wave count
Chart By TradingView

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