Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- UNI chalked an ascending triangle with a potential bullish breakout.
- The altcoin recorded an uptick in open interest (OI) rates at press time.
Uniswap’s [UNI] rally in January offered 43% gains so far. It jumped from $4.963 to $7.109 by the time of publication. But more gains could be likely because of the underlying macroeconomics and fundamentals.
Read Uniswap [UNI] Price Prediction 2023-24
At press time, the king coin, Bitcoin [BTC], threatened to close above $23.5K on the lower timeframe charts even before the next week’s official FOMC announcement. This underlies the positive expectations from the meeting that could see BTC rally into February.
UNI formed an ascending triangle: Is a bullish breakout likely?
Source: UNI/USDT on TradingView
Since January 10, UNI’s price action has chalked a bullish ascending triangle. The FOMC meeting and bullish BTC further suggest a likely bullish breakout with $7.725 as the target. The target level also acts as a pre-FTX level; thus, UNI could gain over 10% if the target is reached.
However, a bearish breakout would invalidate the above bias. Such devaluation could see UNI drop to the bearish target of $5.562.
How much are 1,10,100 UNIs worth today?
UNI was highly bullish on the 12-hour chart, with the Relative Strength Index (RSI) valued at 60. Therefore, a bearish breakout could be highly unlikely.
On the other hand, the low trading volumes indicated by the On Balance Volume (OBV) could delay the uptrend in the short term. But the volumes will pick up if BTC reclaims and surge above $23.5K.
UNI’s sentiment improved as the Open Interest rate increased
Source: Santiment
As per Santiment data, UNI’s weighted sentiment has retreated from the deep negative side and was close to touching the neutral line. This shows investors’ outlook on the DEX asset has improved over the past few days and could bolster its uptrend momentum.
However, UNI’s active addresses have declined significantly by press time. But the number of active addresses trading the asset will change as BTC surges, boosting UNI’s trading volumes and buying pressure.
In addition, there was an uptick in open interest rates at press time, showing more money was flowing into the UNI’s futures market.
The trend shows a change in momentum as OI has declined over the past few days. Therefore, the increasing OI would further boost UNI’s uptrend momentum.
Source: Coinglass