UNI has broken a multi-month downtrend, signaling a potential trend reversal.
A bullish target of $10.63 has been identified following the breakout.
Price is currently testing resistance at $7.18, with support seen at $6.24.
In a significant technical move, Uniswap's native token (UNI) has been able to break out above a falling trendline on the daily chart, portending a change in market momentum. The price action, as seen on the 1-day chart, is indicative of an important trend reversal following a downtrend that started in December 2023.
https://twitter.com/ZAYKCharts/status/1932301429395370157
The trendline has now finally been broken with volume support, after being a stubborn resistance for many months. Such a breakout is close to the $7.14 level and is supported by increased bullish pressure along with a continuous thrust above recent consolidation levels. Based on the chart analysis recently, the breakout came after several rejections and hence this one might be a confirmation of a reversal and not a false alarm.
Price Targets and Immediate Key Levels
After the breakout, technical estimates put a short-term target at about $10.63, a potential gain of about 48% from the level of the breakout. This estimated move is derived from the breakout-to-target range identified on the chart. Note, however, the current resistance at $7.18, which is still a key level the price must close above with high volume to validate continuation.
The support now lies at around $6.24, providing a trading reference point for those tracking the stability of this breakout. A retest of this, if it happens, would not be out of place and might better create a foundation for future upward momentum. The 24-hour price range has stayed within the $6.24 to $7.18 band, showing a period of price consolidation before the breakout.
UNI Gains Momentum with Double-Digit Daily Surge
At the time of reporting, UNI was trading at $7.14, having seen a daily price increase of 14.4%. In terms of crypto pairs, UNI has gained 10.3% against BTC and 6.3% against ETH. These figures indicate strengthening momentum relative to the broader market. While the trendline break signals optimism, market participants are watching closely for confirmation through volume, close-above resistance, and follow-through price action in the coming sessions.
