- Uniswap (UNI) has broken out of an inverse head-and-shoulders pattern, signaling a bullish reversal with a potential 37% upside toward $10.40.
- Strong technical indicators, rising trading activity, and Uniswap’s Smart Wallet launch, along with positive regulatory news, drive the surge.
Uniswap (UNI) has exploded into the spotlight with a powerful breakout, gaining over 20% in just 24 hours and signaling the potential for even more upside ahead. The decentralized exchange’s native token has now surged 84% since its April lows, recently hitting a high of $8.61 and overtaking Aave in market capitalization.
Uniswap Bullish Pattern Confirms Reversal
On the technical front, UNI has broken out of a classic inverse head-and-shoulders pattern—a strong reversal signal. This move was validated by a large bullish candle and further supported by a golden cross earlier this week, where the 20-day moving average moved above the 50-day, reinforcing a strong buy signal.
Adding fuel to the rally, UNI has exited a months-long downtrend and is now trading above key resistance levels. Indicators like the MACD and RSI are also trending upward, pointing to ongoing strength in the market.
Uniswap Targets 37% Upside as Volume and Open Interest Surge
With the breakout confirmed, analysts are now watching a possible climb to $10.40—a 37% gain from current levels. This price target aligns closely with the 24.7% Fibonacci retracement level, adding further technical weight to the forecast.
Uniswap’s daily trading volume has jumped over 150% to $1.39 billion, while open interest in UNI derivatives surged 54% to a record $713 million. A long/short ratio above 1 suggests that most traders are betting on further gains.
Smart Wallet Launch and Regulatory Optimism Boost Sentiment
Part of the bullish shift can be credited to Uniswap’s June 10 announcement of its new Smart Wallet, which simplifies user interaction by eliminating token approvals and introducing features like gas abstraction.
Additionally, broader market sentiment improved after SEC Chair Paul Atkins revealed efforts toward an “innovation exemption” framework for DeFi platforms. This has sparked hope for regulatory clarity and revived optimism for a possible “DeFi Summer 2.0.”
Key Levels to Watch
Despite the surge, traders remain cautious of support at $8.20, which aligns with the 23.6% Fibonacci retracement and could act as a springboard for continued gains. A drop below $7.50, however, would invalidate the bullish setup and could see UNI slide toward $4.70.
As Bitcoin continues to climb and DeFi optimism builds, Uniswap appears well-positioned for a strong continuation—provided key levels hold.
