The Uniswap (UNI) price has broken out from a descending resistance line and could be in the initial stages of a long-term upward movement. Conversely, the PancakeSwap (CAKE) price shows weakness and is expected to break down from its ascending support line.
Uniswap Price Prediction: Breakout Could Lead to $9
The Uniswap price had fallen below a descending resistance line since reaching a high of $9.83 on July 28. The downward movement led to a low of $5.14 on Sept. 21.
Initially, it seemed that the low caused a breakdown from the $5.75 horizontal support area (green circle). However, the UNI price reclaimed the area shortly afterward and validated it as support on Oct. 13. This created a long lower wick (green icon) and was the catalyst for the ongoing upward movement.
On Oct. 25, the UNI token broke out from the short-term descending resistance line. Shortly afterward, it reclaimed the $6.93 resistance area.
This is both a horizontal resistance area and the 0.382 Fib retracement resistance level. Over the past 24 hours, the UNI price has been attempting to validate it as support. If successful in doing so, the rate of increase could accelerate greatly.
This is because besides the 0.618 Fib retracement resistance level at $8, there is no more resistance until the Aug. highs at $9.
The daily RSI also supports the continuation of the upward movement. It has generated bullish divergence (green line) and has moved above 50.
Conversely, daily closes below the $6.93 area and RSI breakdown from its bullish divergence trend line would invalidate this bullish Uniswap price prediction. In that case, the price movement would suggest a re-test of $5.75 would be expected.
Pancakeswap Price Prediction: Weakness Could Lead to Breakdown
The technical analysis for CAKE is considerably less bullish than that of UNI. While the PancakeSwap price has followed an ascending support line since June 18, it is close to breaking down from it.
Between Aug. 9 and Sept. 29, the daily RSI generated bearish divergence (green lines). Afterward, the price action created a lower high, causing CAKE to fall to the ascending support line. The trend line of the divergence is still intact.
If CAKE breaks down, the closest support levels would be at $4.09 and $3.48.
Conversely, an increase above the $4.90 high (red line) would invalidate this bearish PancakeSwap price prediction. In that case, the increase could accelerate significantly toward $6.
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