Uniswap’s native token UNI is gaining strong bullish traction after breaking out of a classic inverse head-and-shoulders pattern on the daily chart. This technical breakout, combined with surging volume and positive momentum indicators, has many analysts calling for a sustained uptrend possibly toward the \$10+ range.
UNI Rallies Over 20% in 24 Hours
According to data from crypto.news, UNI surged over 20% on June 11, peaking at \$8.61, marking an 84% recovery from its April low. Its market cap crossed the \$5 billion mark, overtaking Aave (AAVE) and reaffirming Uniswap’s dominance in the DeFi space.
Meanwhile, daily trading volume jumped 150%, reaching \$1.39 billion, and open interest in derivatives rose 54% to \$713 million, suggesting growing confidence among traders. The long/short ratio exceeding 1 further indicates a bullish bias in market sentiment.
Technical Breakout: What the Charts Are Saying
UNI’s price action has been technically impressive. The token has broken through multiple bullish setups, including:
- Inverse head-and-shoulders pattern, confirmed by a strong bullish candle
- A golden cross, where the 20-day MA crossed above the 50-day MA
- A break above a months-long downtrend of lower highs and lower lows
- Bullish MACD and RSI trends, supporting upward momentum
If this structure holds, the pattern suggests a target of \$10.40, a 37% upside from current levels. That target aligns closely with the 24.7% Fibonacci retracement, reinforcing its significance.
Support and Risk Levels to Watch
While the rally is robust, traders are monitoring the \$8.20 level the 23.6% Fibonacci retracement as key short-term support. Holding this level would signal a healthy continuation of the uptrend. A drop below could lead to short-term consolidation.
A more significant breakdown below \$7.50 would invalidate the bullish structure, possibly sending UNI back toward \$4.70, where stronger support has historically formed.
Catalysts Fueling the Rally
Several recent developments have boosted market optimism:
- On June 10, Uniswap announced its new Smart Wallet, which streamlines on-chain activity by eliminating manual token approvals and enabling gas abstraction a major UX improvement.
- On June 9, SEC Chair Paul Atkins revealed that an “innovation exemption” is being considered to support DeFi platforms. This is seen as a potential regulatory green light that could spark renewed DeFi adoption dubbed “DeFi Summer 2.0.”
- Meanwhile, daily active addresses on the Uniswap network rose 92%, suggesting increasing user engagement and on-chain activity.
- UNI’s gains are also being supported by broader bullish momentum in crypto, especially Bitcoin’s rally above \$110,000, spurred by optimism around U.S.–China trade negotiations.
Final Thoughts
With bullish technical patterns, surging user activity, and regulatory optimism fueling its rally, Uniswap’s UNI token appears poised for a strong upside continuation. However, traders should keep a close eye on critical support levels to validate the rally’s strength and avoid potential reversals.
As always, investors are reminded that market conditions can shift quickly, and responsible trading strategies should account for both opportunity and risk.
