Uniswap: If UNI's price changes by 75%, it may move in this direction.

Since the beginning of the year, Uniswap's price has been on a downward trend for about 300 days. Hence, a massive bull rally for the altcoin could be set off by a price reversal at this point.

An uptick in sentiment appears to be developing.

Since 3 May, 2021, Uniswap's price has been on a steady downward trend, reaching $45.08 on 3 May. In the short term, the $14.51 level was a major factor in the correction. UNI's stock has plummeted by 54 percent in the last month or so, despite multiple retests of this barrier.

Liquidity ran below the recent swing low at $9.53 and dipped into the demand zone, which ranged from $7.31 to $9.69, at this point in the market's trading session.

By pushing the asset to a location where stop-losses are typically placed, market makers use a liquidity run to engineer or fill their bids on it. As soon as the price goes up, it usually goes back down. Market participants' true intentions are evident from the recent drop below $9.53. This indicates a bullish move.

As a result of this correction, Uniswap has entered a demand zone, which ranges from $7.31 to $9.69, making the bullish outlook a high probability reversal.

Consequently, Uniswap's price is expected to rise by 75% to hit the immediate resistance level of $14.51. A similar run-up is likely to begin, bringing UNI's total ascent to 135 percent, if buyers can overcome this hurdle.

UNI/ USDT

The on-chain metrics are aligned with this scenario, which serves as a positive tailwind. Investor activity on the network can be gauged by looking at the on-chain volume. The volume of this index jumped from 217.4 million UNI to 323.4 million UNI in a short period of time. The 48 percent increase in Uniswap's price points to a bullish divergence and indicates that investors are interested in the company at these current prices..

On-chain Volume | Source: Santiment

This bullish opportunity makes perfect sense from a long-term perspective. Bulls aren't willing or able to support an uptrend if support breaks down between $7.31 and $9.69, which is where the support confluence is. This downtrend is likely to be extended, with Uniswap's price retesting lower support levels.

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