UNI Targets $10 Milestone as UniswapX Launch Fuels Inverse Head-and-Shoulders Surge
Uniswap’s native token UNI is making waves with a potential run to $10—thanks to a textbook inverse head-and-shoulders breakout triggered by the UniswapX rollout. Traders are piling in, betting the DEX giant’s latest upgrade will be the catalyst.
Market watchers note the pattern’s bullish implications, though skeptics whisper about ’technical analysis voodoo’—right before quietly checking their own charts. Meanwhile, liquidity providers shrug and keep farming fees.
If the pattern holds, UNI could retest its 2021 glory days. But in DeFi, even ’sure things’ have a habit of rug-pulling expectations. Just ask the ’stablecoin experts’ from Terra’s autopsy report.
Technicals suggest more upside
From a technical standpoint, UNI appears poised for more sustained gains, having broken out of multiple bullish patterns on the daily chart.
UNI broke out of an inverse head and shoulders pattern and confirmed the MOVE with a bullish engulfing candle on Thursday. Adding to the bullish case, the 20-day and 50-day moving averages just formed a golden cross, typically seen as a buy signal.
UNI price has also broken above a multi-month downtrend of lower highs and lower lows, clearing a key resistance zone. The SuperTrend indicator has also flipped bullish and is currently positioned below the price, providing another signal indicating further upside.
If this breakout holds, the inverse head and shoulders pattern suggests a potential move up to around $10, about 37% higher than current levels. That target also lines up with the 61.8% Fibonacci retracement level, giving it extra significance.
A major bullish driver that could be fueling UNI’s recent rally is UniswapX, a new feature designed to optimize each swap by routing it through the best available source.
It works by letting multiple fillers compete to offer users the most favorable price, tapping into both on-chain and off-chain liquidity. By removing the need for batching and adding competitive pricing, UniswapX has sparked strong interest across the DeFi space.
Adding to the momentum, large investors, also known as whales, have begun accumulating UNI in substantial amounts. According to data from Santiment, the number of addresses holding between 10,000 and 1 million UNI has jumped in recent days. This kind of accumulation usually signals growing confidence among large investors, which can often push prices higher.
Short-term pullback still on the table
Despite the bullish drivers and strong technical setup, there is still a key resistance level to watch around $7.87, which marks the 78.6% Fibonacci retracement and could act as a short-term hurdle, potentially leading to some consolidation or a minor pullback before the next leg up.
On the downside, if UNI drops below $6.5, it could invalidate the current bullish breakout pattern. In that case, the price might retrace further toward $5.81, which coincides with the 50-day simple moving average and could serve as a key support level for buyers to step back in.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
