Uniswap price risks 45% crash by September despite Robinhood listing
The latest Uniswap (UNI) chart pattern suggests that investors should be prepared for a correction after gaining nearly 20% over the past week.
UNI's price has been trending upward since mid-June inside what appears to be a "rising wedge," which traditional analysts view as a bearish reversal pattern due to its history of luring bulls into buying fake-out bounces.
Therefore, rising wedges resolve after the price breaks below the lower trendline. Traders typically calculate a rising wedge's downside target by subtracting the distance between its upper and lower trendline from the breakdown point.
That puts UNI's downside target at $3.8 by September 2022, down 45% from today's price if the breakdown begins near $6.52. However, the target would shift upward to $4.65 if the breakdown originates at the apex, i.e., where the wedge's trendlines converge, resulting in a drop of 32.25% from today's price
Interestingly, a rising wedge also formed between February and April. The pattern snapped a 65% upside move, with a broader 70% price slump that took UNI's value to $3.56 per unit from around $12.50.
Simultaneously, Uniswap has also been painting an inverse head and shoulders (IH&S) pattern with an upside target sitting around $9.50, up 40% from current price levels.
The bullish setup has one fundamental backing: Robinhood.
Related: Crypto exchange FTX is looking into acquiring Robinhood: Report
Notably, the U.S.-based zero-fee trading app announced on July 14 that it had added Uniswap to its portfolio of cryptocurrencies for its 22.8 million retail investors.
UNI is now on Robinhood @Uniswap #CryptoListing https://t.co/KBoYMziAyc
Robinhood's listing doesn't guarantee an extended bull run, however, as the market has witnessed in Shiba
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