UNI/USDT Price Action: Is a Breakout Imminent?
For UniSwap (UNI), the price action has shown signs of a strong rally after successfully retesting a critical support level at $7.21. This level has proven resilient, and UNI’s price is now hovering near a potential breakout zone. However, there are several factors to consider before getting overly bullish on UNI.
The analyst notes that the next key resistance for UNI stands at $8.36. A breakout above this level would confirm the bullish momentum and open the door for a move toward higher targets. A successful Monthly Close above $8.36, followed by a retest of this level as support, would be a clear indication that UNI could experience a more significant upward movement.
Weekly Timeframe: A Downtrending Channel in Play
On the Weekly timeframe, UNI is currently forming a Downtrending Channel. The price is still below the blue diagonal resistance, and without a strong Weekly Close above this level, the chances of a rejection remain high. In this scenario, the price may continue to consolidate within the current range.
For traders, the consolidation phase could present buying opportunities, especially if the price experiences downside wicks below the Range Low. Here’s a summary of the key levels to watch for UNI:
- Critical Support: $7.21
- Resistance: $8.36 (Breakout confirmation needed)
- Key Weekly Resistance: Blue diagonal line (Watch for a breakout)
AVAX/USDT: Could Avalanche Be Primed for a Macro Uptrend?
Turning to Avalanche (AVAX), the analyst highlights that the price has been retesting its Macro Downtrend as support for several months. This pattern of downside wicking below the downtrend line suggests that AVAX could be poised for a shift into a new Macro Uptrend.
The analyst draws a parallel between AVAX and Dogecoin (DOGE), noting that both assets have historically tested their Macro Downtrends before embarking on significant rallies. While DOGE has already surged after such a retest, AVAX, as a laggard, is expected to follow suit in the near future.
What to Expect for AVAX Price Action
The analyst expects that AVAX will eventually rally to revisit the highs seen in early 2024. This potential move would mirror the behavior of DOGE, suggesting that AVAX could experience a sharp upward trend once it confirms the downtrend as support.
Key takeaways for AVAX include:
- Macro Downtrend has been retested as support
- Potential for a Macro Uptrend to emerge
- Expectations for a rally toward early 2024 highs, similar to DOGE’s price action
Conclusion: Key Levels and Trends to Watch
In summary, both UNI and AVAX have important price levels and trends to watch. For UNI, confirmation of a breakout above $8.36 could set the stage for higher targets, but without a strong Weekly Close above resistance, rejection and consolidation are still possible. On the other hand, AVAX’s consistent retesting of its Macro Downtrend suggests a potential shift toward a new uptrend, with the possibility of revisiting previous highs.
As always, traders should stay alert to these key levels and price movements to capitalize on potential opportunities in the current market environment.
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