Uniswap breaks out of inverse head-and-shoulders, targets 37% upside ahead

Uniswap is showing strong signs of a bullish reversal after breaking out of an inverse head-and-shoulders pattern on the daily chart.

According to data crypto.news, Uniswap (UNI) UNI shot up over 20% in the past 24 hours, hitting a high of $8.61 on June 11, up 84% from its April low. Its market cap has surpassed $5 billion, flipping that of Aave (AAVE).

Meanwhile, its daily trading volume increased by more than 150% over the previous day to nearly $1.39 billion. In the derivatives market, open interest surged 54% to a record $713 million, showing that more traders are betting long. The long/short ratio is also above 1, which usually means more people are expecting prices to rise.

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 and confirmed it with a strong bullish candle. It also formed a golden cross earlier this week, when the 20-day moving average crossed above the 50-day, a common buy signal, as reported earlier by crypto.news.

To add to the momentum, UNI has broken out of a months-long downtrend defined by lower highs and lower lows. It’s now above key resistance, and both the MACD and RSI indicators are trending upward.

If the breakout stays intact, the inverse head and shoulders pattern points to a potential move toward $10.40, roughly 37% above current levels. That target also aligns with the 24.7% Fibonacci retracement level, adding more weight to its importance.

The ongoing rally appears to be driven in part by Uniswap’s June 10 announcement of its new Smart Wallet, which aims to streamline onchain interactions by removing manual token approvals and enabling features like gas abstraction.

Further hopes of regulatory clarity in the U.S. may have further contributed to the bullish sentiment. On June 9, SEC Chair Paul Atkins indicated that the agency is working on an “innovation exemption” framework to ease DeFi platforms’ path to market.

The announcement sparked renewed optimism across the cryptocurrency market, with many viewing it as a potential catalyst for a “DeFi Summer 2.0” revival.

Since Uniswap is one of the largest and most widely used decentralized exchanges, it has been particularly responsive to these developments. 

Daily active addresses on the Uniswap network have surged 92% in the past 24 hours, a strong signal that user engagement is rebounding as bullish momentum builds.

UNI’s rally is also being supported by Bitcoin’s recovery, which saw the asset climb above $110,000 on hopes tied to U.S.–China trade negotiations in London.

Even with strong momentum and bullish indicators, traders are closely watching a key support level at $8.20, which corresponds to the 23.6% Fibonacci retracement. 

This level often acts as the first line of support during a healthy uptrend, making it a critical zone to hold for continued bullish momentum. A drop below this may trigger short-term consolidation or a minor pullback before the uptrend resumes. 

But a decisive move below $7.50 would invalidate the current bullish structure. In that case, UNI could retrace further toward $4.70, where stronger buying interest might re-emerge.