Uniswap Shows Strength: Breakout from Technical Pattern Opens Door to 37% Rally

Uniswap’s token (UNI) has been gaining momentum in recent days. Over the past 24 hours, its price jumped by more than 20%, reaching $8.61 on June 11 — an 84% increase from its April low. UNI’s market capitalization now exceeds $5 billion, overtaking rival Aave. Trading volume also surged by more than 150% to approximately $1.39 billion. On the derivatives market, open interest hit a record $713 million, indicating that many traders are opening long positions. The long/short ratio is also skewed bullish.

Technical Analysis Signals a Strong Uptrend From a technical standpoint, UNI confirmed a breakout from an inverse head-and-shoulders pattern on the daily chart — a formation that typically signals a bullish reversal. Additionally, a golden cross has formed, where the 20-day moving average crosses above the 50-day average, widely considered a buy signal.

UNI has also exited a long-term downtrend, breaking through a key resistance level. Both the MACD and RSI indicators are pointing upward. If momentum holds, this pattern suggests a target price of around $10.40 — a roughly 37% increase from current levels. This aligns with the 24.7% Fibonacci retracement level, adding weight to the projection.

Fundamentals Support the Upside Market confidence was further fueled by the June 10 announcement of the Uniswap Smart Wallet, a new solution designed to streamline user interaction by removing manual token approvals and optimizing gas usage. Speculation around upcoming U.S. regulatory clarity also contributes to the positive sentiment. The SEC chair recently hinted at a potential "innovation exemption" framework that could ease the path for DeFi platforms. As the largest decentralized exchange, Uniswap reacted swiftly to this news. Daily active addresses on its network spiked by more than 90% within 24 hours — a strong sign that investor engagement is returning.

What to Watch Next? Beyond Uniswap-specific developments, broader market sentiment is also positive — Bitcoin has surged past $110,000, adding overall strength to the crypto space. Traders are closely watching the $8.20 level, which corresponds to the 23.6% Fibonacci retracement. Holding this support is crucial for maintaining the bullish momentum. However, if UNI falls below $7.50, the current bullish structure could break down, potentially leading the price back to $4.70 — an area that has historically drawn renewed buying interest.

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