Date: Wed, Jan 29, 2025, 07:58 AM GMT
After a strong rally in November, the cryptocurrency market has faced a significant pullback, with altcoins struggling due to Bitcoin’s rising dominance. Since early December, BTC dominance has surged from 54.78% to 59.32%, adding bearish pressure on the broader altcoin market.
Despite this, Uniswap (UNI) has shown signs of resilience. While it suffered an 10% drop over the past 30 days, today, it bounced back with an impressive 7% gain.
Source: Coinmarketcap
Retesting Its Symmetrical Triangle Breakout
According to analysts, Uniswap (UNI) recently broke out of a long-standing symmetrical triangle pattern—a formation that had been developing for over two years. This triangle was defined by a descending resistance line and an ascending support line, gradually squeezing UNI into a tighter range.
Uniswap (UNI) Weekly Chart/Source: clifton_ideas (X)
The breakout was confirmed when UNI surged past the upper boundary of the triangle around $11, pushing its price to a local high of $19.44 before attempting a retest.
Currently, UNI is trading at $12.0 and is in the process of retesting the breakout level, which now acts as a key support zone. If buyers step in at this level, it could reinforce bullish momentum, potentially leading to further gains. Analysts suggest that if the breakout holds, UNI could aim for price targets of $70 which represents a bullish rally of over 600% from the current levels.
Is a Reversal Ahead?
The broader altcoin market has already seen significant corrections and is showing early signs of recovery. However, much depends on Bitcoin dominance, which remains high at 59.32%. A decline in BTC dominance would likely shift capital into altcoins, giving UNI and others the fuel needed for a strong rebound.
Some analysts even predict a massive altcoin rally could be on the horizon.
That said, caution is necessary. If UNI fails to hold above the breakout level, it could slip back into the triangle and potentially retest lower support around $8.50.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
