The revelation by Tesla that it had liquidated 75% of its Bitcoin holdings produced a FUD effect on the crypto market, dampening Uniswap price predictions of a continued recovery. This forced the price of the UNI/USDT pair to beat a retreat on Wednesday by 6.65%. Despite a slight recovery in Thursday’s trading, bullish volumes remain low, which could jeopardise the immediate support at 6.7135.
The number 1 decentralized exchange is just coming off the back of an $8m hack of its exchange in which a sophisticated phishing algorithm was able to cart away with a large amount of Ethereum tokens of the said amount. It is thought that a fake airdrop that lured victims to connect their wallet addresses was the method by which the compromise occurred and not via an exploitation of a vulnerability in the exchange.
This accounts for why the token recovered quickly after losing 3.3% on the day of the attack. The recent crypto market uptick also helped boost bullish Uniswap price predictions. However, these appear to have stalled at the 7.69 key resistance.
Technically speaking, the resistance in question is the 50% Fibonacci retracement on the weekly chart, tracing from the swing high of 12.1643 (4 April weekly high) to the swing low of 3.3272 (13 June weekly low). A furtherance of this recent rally has to take out this resistance to restore bullish Uniswap price predictions.
Uniswap Price Prediction
The 4-hour chart shows an emerging bearish flag. The bears need to force a breakdown of this flag and the 6.7135 support level to carve a path toward the 5.9252 pivot (11 July 2022 low), where the completion point of the measured move from the pattern lies.
This move must take out the support at 6.3807 to attain completion. Other potential harvest points for the bears lie at 5.4469 and 5.2464 (11 July and 13 July lows). On the other hand, the bulls need to force a bounce from the 6.7135 support, targeting 7.1370 initially.
This barrier must give way, along with the 7.7117 resistance formed by the 16 July/19 July highs, to force a resumption of the recovery retracement. This minor trend recovery has 8.1145 (5 May 2022 high) and 8.8383 (22 April 2022 high) as the initial upside targets. 9.7901 is another potential harvest point for the bulls, but it is presently out of reach.