Robinhood listing brought UNI some of its recent gains but it doesn't guarantee an extended bull run.
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.UNI/USD daily price chart featuring 'rising wedge' setup. Source: TradingView
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.UNI/USD daily price chart featuring IH&S setup. Source: TradingView
The bullish setup has one fundamental backing: Robinhood.
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.
Robinhood's listing doesn't guarantee an extended bull run, however, as the market has witnessed in Shiba Inu's (SHIB) case.
Notably, the firm's decision to list SHIB assisted the token in rising by almost 20% on April 12 but couldn't help it hold on to its gains. SHIB's price has crashed by nearly 60% since its Robinhood's listing.
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