Uniswap (UNI) Primed for Takeoff? $4.6 Support Level Sparks Bullish Revival

Uniswap’s native token UNI is showing signs of life at a critical $4.6 support level—a make-or-break moment for DeFi’s sleeping giant.

After months of sideways action, the DEX pioneer is flashing technical strength just as liquidity returns to altcoin markets. Chartists point to a bullish divergence forming on weekly timeframes, while on-chain data reveals accumulation by smart money.

The catalyst? A perfect storm of protocol fee upgrades and V4 hype building ahead of Ethereum’s next major upgrade. But let’s be real—this is crypto, where ’fundamentals’ often mean watching which narrative Wall Street interns are shilling this quarter.

Key levels to watch: A clean break above $5.80 could trigger algorithmic buying, while failure to hold $4.6 risks revisiting December’s lows. Either way, UNI’s awakening could dictate sentiment across the entire DEX sector.

The Bullish Reversal Setup: Why UNI’s Price Action Matters Now

UNI’s recent price behavior can be traced to a classic bullish reversal setup forming on the daily chart. Uniswap has broken out of a falling wedge pattern, a formation typically seen as a precursor to trend reversals. This breakout came after a decisive retest of the $4.6 level.

What makes this setup particularly compelling is the combination of the falling wedge breakout and UNI’s successful rebound from $4.6. This confluence of bullish signals implies that the bears may be losing grip, while bulls are regaining confidence. If the token continues to build on this momentum, it could pave the way 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.

Where Could UNI Go Next?

With Uniswap 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 building upward momentum. If the price sustains its bullishness, it might pave the way for a swift move higher.

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.