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Top crypto analyst Nicholas Merten is mapping out bullish scenarios for UNI, the native cryptocurrency of the decentralized exchange Uniswap.
In a new video, Merten tells his 463,000 YouTube subscribers that UNI/Bitcoin is currently bouncing from a key support level.
“Uniswap has been generally holding, albeit for a few exceptions where the wicks break a bit lower. Every time we get towards this range [0.0005 Bitcoin (BTC) or $16], buyers come in. Price doesn’t live below this line very long, and in fact, buyers come in and drive the price higher.”
Merten highlights that he believes UNI/BTC is in a mid-cycle correction as the pair has yet to print a bearish lower low setup, signaling a potential trend reversal.
The prominent crypto strategist is also plotting two bullish scripts for UNI/BTC. Merten sees the pair printing a new all-time high above 0.0009 BTC, worth about $30 at time of writing, by the fourth quarter of 2021.
“We’d want to see [UNI/BTC] set in a higher low… So you might get it where we break higher than this range [0.0007 or $23.74] over the course of July. We come back down. We maybe set a higher support range… And then, we start moving higher, revisiting those previous highs against Bitcoin, and start popping up higher…
It could be we set in a lower high, setting a higher low, and then eventually claim higher price territory.”
Another coin pair on Merten’s radar is Litecoin (LTC) against Bitcoin. According to the analyst, LTC/ BTC is forming a bullish pattern that could potentially end its downtrend.
“What we’ve got here with LTC/BTC is that you’ve got a descending wedge. It sounds bearish, but actually a descending wedge tends to be very bullish because the highs are falling at a faster rate than lows or the support range. So buyers are coming in, albeit lower levels, but they’re coming in at shorter and shorter intervals.”
Merten says there’s a good chance that LTC/BTC will break its diagonal resistance around 0.0038, worth about $130, before exploding.
As for Chainlink, Merten says the decentralized oracle network is currently hovering above its long-trend support against Bitcoin (LINK/BTC).
“You can see here that Chainlink has just come back down, yet again, on a line of significant support. It’s pulling back. It’s cooling down. It’s getting into what’s generally a discount range… At this range [it] tends to be that people come in and drag the price higher.”