UNI Shows Early Signs of Bullish Reversal
Uniswap’s UNI token is showing early signs of a bullish reversal. According to crypto.news, UNI surged over 20% in the last 24 hours, hitting an intraday high of $7.6 on May 29. This is nearly 57% higher than its April low. The market cap also rose to around $4.4 billion.
Trading volume increased by over 200%, surpassing $1 billion. In the derivatives market, open interest climbed 20% to a record $514 million. This suggests a spike in leveraged long positions.
Technically, UNI appears poised for more gains. It broke out of an inverse head and shoulders pattern and confirmed the move with a bullish engulfing candle. The 20-day and 50-day moving averages formed a golden cross, a buy signal.
UNI has also broken above a multi-month downtrend, clearing a key resistance zone. The SuperTrend indicator flipped bullish, providing another signal for further upside.
If this breakout holds,UNI could move up to around $10,about 37% higher than current levels. This target aligns with the 61.8% fibonacci retracement level.
A major bullish driver is UniswapX, a new feature that optimizes swaps by routing them through the best available source. It works by letting multiple fillers compete to offer users the most favorable price.
Large investors, or whales, have begun accumulating UNI in substantial amounts. This usually signals growing confidence among large investors, which can push prices higher.
Despite the bullish drivers, ther is still a key resistance level to watch around $7.87. If UNI drops below $6.5, it could invalidate the current bullish breakout pattern.
