Uniswap token, the native cryptocurrency of the world's largest decentralized crypto exchange, was one of the key beneficiaries during the 2021 bull run as traders and investors flocked to the platform to take advantage of the fast-rising prices of cryptocurrencies across the market.
Uniswap's low fees also played a part in its popularity, allowing its token price to soar from $3.6 in December 2020 to $45 in May 2021.
However, Uniswap has taken a relatively big hit and has declined in price ever since, dropping by more than 86% to the $6 zone where it now sits.
Uniswap was trading at a $7.75 local high when the news of the FTX crash hit the market in the first few days of November. And just like the other cryptocurrencies on the market, UNI registered a 40% dip that took the cryptocurrency straight down to $4.69.
UNI token's journey ever since then has been about rising again and reclaiming its previous highs. Over the past month, UNI has managed to rise from these lows and retest the $6.5 zone in mid-November before being rejected again.
After a series of price rejections at this price zone, the cryptocurrency has started trending upwards for another retest and potential breakout.
Traders and analysts across the market are starting to wonder if a Uniswap breakout is on its way or if the cryptocurrency is inbound for another price rejection that takes it to the $4 zone.
The price action of Uniswap since the FTX crash has formed what appears to be an ascending channel on the charts. This ascending channel has the $6.5 resistance as its top and an ascending channel as its bottom.
This failure of the Uniswap bulls to push the price of the cryptocurrency above the $6.5 resistance over time may encourage the bears to push the price lower.
Before the FTX crash, the UNI bulls had only just managed to push the price of the cryptocurrency above the 200-day moving average. However, when the market started to dip, UNI sank right below this zone again and has struggled to get back up.
The latest failed attempt by the bulls to push the price of UNI over this moving average was last week. Coupled with the death cross between the 55-day moving average (red) and the 200-day moving average (blue), things do not look so promising for the bulls.
Overall on the daily chart, the cryptocurrency's middle band sits at the 5.74 zone, the upper band sits at 6.55, and the lower band sits at 5.04. This means that the bulls may find themselves outmatched in the fight to push the cryptocurrency's price above this resistance level.
On the bright side, if the bears succeed in pushing the price of the cryptocurrency down in a price rejection, the likely support would be the bottom of the ascending triangle around $5.5, where the bulls will be poised for another rally to the top of the triangle. In such a setup, the scalpers and swing traders may find it easy to book some profits
If UNI does break through the $6.5 resistance, the next target for the cryptocurrency would be the $7.75 zone, where UNI sat before the FTX crash.
Overall, the rally from $5.5 to $7.5 would be a 40% rally to the upside.
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