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Crypto assets have been down in the dumps, but it looks like they may be ready to make that bullish turn.

Let’s take a quick look at a potential long opportunity in Uniswap to see if the potential rewards now outweigh the potential risks.

 Uniswap Daily Chart

Uniswap (UNI) vs. USD Daily Chart
Uniswap (UNI) vs. USD Daily Chart

At the end of May, we noted that crypto assets may be in the midst of a “Dead Cat Bounce,” where the broad rally after the major drop in May was more of a seller’s opportunity than a bullish reversal.

There we noted that UNI/USD’s rally from the $13 handle up to the $45 handle in just a few days had a good chance of seeing resistance as it retests a broken support area and Fibonacci retracement area.

Well, it looks like the bears did indeed win out as the market moved back to the May panic lows around the $14 handle by the end of June.

Currently, it looks like the bulls have held the line once again at $14, and with major support now confirmed and the market now starting to break above the falling ‘highs’ pattern, the question now is whether or not the bulls will take charge once again?

Of course, we won’t know for a while, but with a bullish divergence forming and a move above the falling trendlines at a major support area, the potential reward-to-risk setup is very attractive to those looking to gain exposure to arguably the top crypto decentralized exchange in Uniswap.

Targeting the 2021 highs around $44 and limiting risk to just below the support area around $12 makes for a rough 4:1 potential R:R!

With a lot of the crypto FUD (e.g., China’s renewed crypto crackdown wipes $400 billion off the market, Central bankers talk down concerns over digital currency risks) seemingly behind us, and crypto adoption still in the works (e.g., Morgan Stanley set to expand Bitcoin fund optionsGrayscale Brings 13 More Tokens With DeFi Focus Under Consideration), the odds slightly lean in favor of crypto bulls at these levels.

So, we’re watching out for a confirmed break above the falling ‘highs’ pattern for a potential long-term long position in Uniswap as the future continues to look optimistic after its recent improvements with Uniswap V3 may be enough to hold the protocol’s spot as king of the decentralized exchanges.

What do you all think? Is this the bottom in Uniswap? Is UNI/USD a buy or sell? What do you see as the catalysts to get UNI back to its May highs?

Don’t forget to check out our real-time cryptocurrency strength meter and cryptocurreency volatility meter.