Is the “Bearish Cypher” pattern enough to make the UNI price increase 100%?
The degree of association with the keyword “DeFi” brings many benefits to tokens this year. And Uniswap’s administrative token – UNI – is one of them. The token has topped the charts after gaining more than 5550% within a few hours of trading, up from $ 0.15 to $ 8.62.
Despite the DeFi incident, the UNI price still strives to grow
UNI is still an airdrop token that motivates beneficiaries to sell it as soon as they receive it. That sent the UNI / USD down even more from its year-to-date high. Since October 7, almost three weeks after its launch, the pair was trading for $ 2.47, down 71.25%.
UNI/USD price trends since launch | Source: TradingView
This decline occurred amid a DeFi crisis across the market. Almost every asset, representing productivity farming projects, decentralized exchanges, and decentralized lending/borrowing, has plummeted. This shows that their uptrend has been exhausted, leading to panic starts for traders to start taking profits.
But despite the DeFi incident, UNI still promises to make up for all its losses. According to ForexOP.com, the Cypher in Forex trading represents a five-point harmonic chart pattern: XABCD.
“In any Cypher, points X, C and D are the critical points,” the portal noted. “For a bullish Cypher, X should be the pattern low and C the pattern high. A bearish Cypher makes its high at X, and its low at C.”
Based on the definition, UNI is currently forming a discounted “Bearish Cypher” pattern. It is also confirmed by the setbacks between AC (38% -62%), BC (113% -141%) and AD (78%) compared to XA. And now, placing the Bearish Cypher pattern on the current UNI / USD chart makes it look like this.
The analyst behind the chart above said:
“So far all fib levels line up accurately. If this is the case and price breaks above $5 resistance, we’ll be seeing $7 soon.”
UNI is a new token but what it represents is a three-year-old trustworthy DeFi project, UniSwap. The exchange currently facilitates the volume of hundreds of millions of dollars per day. Its trading volume is higher than the results posted by top centralized exchanges Binance and Coinbase.
UniSwap has paid out more than $ 60 million to its liquidity providers. That is also why, despite UNI’s latest plunge, the total locked value (TVL) within its pool has barely decreased. In contrast, other pools lose almost half of their reserves.
With UNI now becoming an economic engine, tokens are expected to increase in value even more.
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