Uniswap (UNI) Shows Signs of a Powerful Resurgence as It Holds the $4.60 Support Level

Uniswap (UNI) price is showing signs of a powerful resurgence as it holds the $4.60 support zone. This critical level could ignite the next major rally for UNI, which has seen better days.

Recently, UNI has been showing strength as it bounces off support and shows signs of improving momentum. However, more confirmation is needed to solidify the reversal narrative. Critical resistance zones lie ahead, and how UNI reacts around these levels will determine whether this move has real staying power or fades as another false start.

Here’s a breakdown of the bullish reversal setup forming in UNI and why it’s key to watch.

Uniswap Is Breaking Out Of A Wedge – Is A Major Rally On The Cards?

The recent price action of UNI can be traced to a classic bullish reversal setup forming on the daily chart.

As seen in the chart above, UNI has been forming a falling wedge pattern, a formation typically seen as a precursor to trend reversals. This breakout comes after a decisive retest of the $4.6 level, which was a key support zone for UNI.

What makes this setup particularly compelling is the combination of the falling wedge breakout and successful rebound from $4.6. This confluence of bullish signals suggests that the bears may be losing grip, while bulls are regaining confidence. If UNI continues to build on this momentum, it could pave the map for a larger upward move, confirming the trend reversal.

Technical indicators are starting to confirm the bullish narrative. One of the key signals comes from the Relative Strength Index (RSI), which has rebounded from oversold territory and is now pushing upward, reflecting renewed buying interest and growing momentum. A continued rise in RSI above the midline (50) would further support the case for a trend reversal.

Additionally, trading volume is beginning to show signs of recovery, with an increase of over 26%. The rising volume during this rebound suggests that the move is supported by genuine market participation. If volume continues to build alongside upward price movement, it could fuel Uniswap to challenge and break through key resistance levels in the coming sessions.

What Could UNI Go Next?

With UNI now staging a notable recovery and forming a reversal pattern, traders are now turning their attention to the breakout scenario and where it could lead.

After retesting the $4.6 support level and bouncing above the falling wedge with renewed strength, UNI appears to be readying for a swift move higher. If the price sustains its bullishness, it might pave the way for a swift rally.

From a technical standpoint, the next upside targets lie around $5.5 and $6.7, where previous breakdowns occurred and volume peaks exist. A sustained move beyond those levels could even open the door for a test of the $8.7 mark in the medium term.

Overall, if volume supports the push, it increases the potential to set off a larger rally.