The Uniswap (UNI) price was subject to a rapid increase on Sept 17, but reached a top the next day and has been decreasing since.
The recent breakout suggests that the price is likely to continue its upward movement.
The UNI price has been decreasing since Sept 18, when the price reached a high of $8.60. The decrease took the shape of a descending wedge, which is normally considered a bullish reversal pattern.
After reaching a local low of $4.65 inside a minor support area and the 0.618 Fib level of the entire upward move on Sept 20, it broke out from the wedge and began aa slight upward move that is still ongoing.
Technical indicators are bullish. The MACD is moving upwards, having almost crossed into positive territory, and the Stochastic Oscillator has just made a bullish cross.
While the RSI is slightly above 50, it should move even higher if the price continues to increase.
Cryptocurrency trader @CryptoToni_ outlined a UNI chart, stating that the price has broken out from a descending wedge and looks to be headed towards $10.
It’s possible that the aforementioned breakout from the wedge marked the bottom of wave 4 (in black below), which would mean that wave 5 has now begun.
The fact that the bottom of wave 4 barely failed to breach the top of wave 1 at $3.81 makes this likely to be the correct wave count.
A decrease below $3.81 would invalidate this particular wave count.
If wave 5 continues as expected, the price could increase all the way to $10.95. This target is found by projecting the length of waves 1-3 to the bottom of wave 4.
To conclude the UNI price has possibly begun its fifth-and-final bullish wave which could take the price all the way to $10.89.