Uniswap Price Outlook: UNI Bulls Eyes Explosive Move Towards $50 -…

Key Uniswap Takeaways

Uniswap (UNI/USD) posted incredible during the Asia-Pacific and European sessions Thursday.
The decentralized exchange token almost reached its previous all-time high before retreating lower.
Nevertheless, it trades inside a classic bullish continuation structure, promising to extend its upside bias to $50.

Uniswap did better than Bitcoin and Ethereum combined as it opened a super bullish session this Thursday.

The UNI/USD exchange rate reached an intraday high of $39.52 during the early European trading hours after rising 18.15 percent into the day, including the previous Asian-Pacific session. The pair’s gains appeared as a part of the rebound that began on April 18 after it fell to as low as $26.63. Meanwhile, a technical structure also assisted UNI/USD in determine its short-term upside bias.

Dubbed as Ascending Triangle, the pattern appears when an asset forms two or more troughs on a rising trendline and two or more tops on a horizontal resistance trendline. Both the trendlines converge later to make the structure appear like a right-angled triangle. In an uptrend, traders treat the Ascending Triangle pattern as a bullish continuation structure.

The Uniswap token ticks almost all the boxes when it comes to confirming an Ascending Channel formation, as shown in the chart below.

Uniswap prepares for a breakout move above the triangle pattern. Source: UNIUSD on TradingView.com

Meanwhile, UNI/USD is only one upside breakout away from confirming its bullish continuation move. Should the pair jump above the Triangle’s resistance trendline, it could surge to as high as $50. That is because an Ascending Channel’s upside breakout tends to take the price as high as the widest distance between the pattern’s upper and lower trendlines.

In UNI’s case, that distance is $19.36-long.

Conflicting Setup

Adjusting the upper trendline of the Ascending Channel pattern could also lead to the formation of Rising Wedge, a bearish reversal pattern.

Uniswap trade outlook from the point of view of Rising Wedge. Source: UNIUSD on TradingView.com

The structure suggests that UNI/USD would approach the Wedge apex (the level at which the two trendlines converge). After or ahead of touching the apex, the pair could break below the lower trendline. If accompanied by higher volume, it would fall by as much as the maximum distance between Wedge’s trendlines.

That risks crashing the UNI prices to as low as $21.

Fundamentally, Uniswap’s bias looks bullish. The decentralized exchange will undergo a so-called V3 upgrade on May 5, 2021. The update will introduce a long-awaited “concentrated liquidity” feature on the Uniswap platform. In retrospect, the feature will enable liquidity providers to make markets within customized price ranges, over which they want to provide liquidity.

It expects to increase capital efficiency on the Uniswap decentralized exchange. It also marks the platform’s first step to introduce cheaper gas fees following integration with Optimism, a second-layer Ethereum transaction settlement solution.

All and all, traders appear excited about the Uniswap V3 upgrade. That seems to explain why UNI prices rise even amid a broader price correction in most of the top digital assets.