UNI forms a clear Inverse Head and Shoulders pattern on the 4-hour chart with neckline resistance at $11.50.
The breakout target from the pattern projects a move to $16.17, indicating a potential 40% price increase from the neckline.
The trading volume will increase with the price action indicating better participation in the market and a stronger turn of bullish momentum.
Uniswap (UNI) trades at $10.94 as of writing, up 2.83 percent in the past 24 hours, 10.78 percent in the past week. The volume of trading is 1; the price is 1.199,420,986; the trading volume indicates there is more activity on the market, and the token is getting close to an important resistance level on the chart
UNI Approaches Key Technical Level
UNI’s 4-hour chart reveals a well-formed Inverse Head and Shoulders pattern, a common indicator of potential trend reversal. The neckline is positioned near $11.50, which has repeatedly acted as a strong resistance in recent sessions.
CryptoBull_360 noted on social media that UNI is preparing for a “massive breakout” from this formation. The tweet highlighted that the trend is ready for a strong shift from the horizontal trendline resistance zone.
https://twitter.com/CryptoBull_360/status/1954959267871723826
Price action has tightened near this level, with multiple retests met by stronger buying pressure. This consolidation has built the base for a possible upward breakout if momentum continues.
Technical Structure and Breakout Target
The structure features a left shoulder, a lower head, and a right shoulder, with the neckline as the breakout trigger. Recent candles have pierced the resistance box with long upper wicks and follow-through, showing determination from market buyers.
Consolidation below the neckline has allowed accumulation by traders, creating the foundation for a strong rally if the resistance breaks. The measured target, based on the height of the pattern added to the neckline, projects a move toward $16.17.
This projected level reflects a potential 40% gain from the breakout point, aligning with traditional technical analysis strategies for chart patterns. The formation and target provide clear guidance for short-term market expectations.
Volume Trends and Momentum Confirmation
Source: coinglass
In addition, increased volume patterns normally occur with sustainable breakouts making them less likely to experience false movements. This pattern of volume expansion has been visible during each upward push toward resistance.
If UNI secures a close above $11.50 and holds the level, the resistance could turn into a support zone. This would give traders a second chance to retest in order to get confirmation before position trading. The trading sessions ahead will decide whether the breakout will remain or not, and whether the p
