Uniswap (UNI) grew by 80% in February: will the dynamics continue in March

Uniswap broke through resistance

The weekly timeframe shows that the Uniswap platform coin has been rising since October 2023, when the price bounced off a long-term horizontal support area. The upward movement led to a breakout of the descending resistance line next month. At that time, the age of this trend line was 480 days.

After several retests, UNI launched a new bullish move in early 2024 and broke through the horizontal resistance area. This rally culminated in last week's high of $12.86.. After that the price dropped slightly.

Source: TradingView

Weekly relative strength index (RSI) supports gains. Firstly, it was preceded by a bullish divergence in the RSI (green trend line). The RSI has been on an upward trend since then and has just risen above 70.. At the same time, there is no bearish divergence that would cancel the previous upward movement.

UNI forecast: where the bullish breakout will lead

The daily timeframe coincides with the weekly one and also gives a bullish forecast.

Thus, the most likely scenario, according to Elliott wave analysis, predicts continued growth. It demonstrates that UNI is in the third wave of a five-wave upward movement (white color). The sub-wave analysis is represented in black and suggests that the token is in the fourth sub-wave.

If this calculation is correct, Uniswap will launch a new bullish move after the current correction ends. This could take the price to the next resistance at $16.10, which would give us a first to third wave ratio of 1:1.61 and would represent a 50% upside.

The daily RSI supports this possibility, as the indicator is growing and is above 70.

Source: TradingView

Despite the bullish outlook, UNI's failure to absorb the $12.10 high could trigger a nearly 30% fall to the nearest support level at $7.80.

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