Uniswap (UNI) Surges 20% in 24 Hours: Is a Bull Run to $10.40 Next?

UNI Breaks Out of Inverse Head-and-Shoulders Pattern

Hold onto your hats, folks! Uniswap is absolutely on fire right now, breaking out of an inverse head-and-shoulders pattern on the daily chart like a champ. This is a major bullish reversal signal, and things are just heating up!

UNI Skyrockets 84% from April Lows, Outpacing Aave

Get this: Uniswap's UNI token shot up over 20% in the last 24 hours alone, hitting a high of $8.61 on June 11. That's an insane 84% surge from its April low! UNI's market cap has now blasted past $5 billion, leaving Aave (AAVE) in the dust.

Trading Volume and Open Interest Explode

But wait, there's more! UNI's daily trading volume has gone absolutely nuts, jumping over 150% from the previous day to nearly $1.39 billion. And in the derivatives market, open interest has surged 54% to a mind-blowing record of $713 million. More traders are piling in with long positions, and the long/short ratio is above 1, signaling that the crowd is betting on even higher prices.

Technical Analysis Points to Sustained Gains

From a technical standpoint, UNI looks like it's ready to keep this party going. It's broken out of not just one, but multiple bullish patterns on the daily chart. We're talking an inverse head and shoulders confirmed by a strong bullish candle, and a golden cross earlier this week when the 20-day moving average crossed above the 50-day. These are classic buy signals, and the momentum is real.

UNI Shatters Months-Long Downtrend

UNI has absolutely shattered a months-long downtrend of lower highs and lower lows. It's now above key resistance, and both the MACD and RSI indicators are trending upward like there's no tomorrow.

Bullish Target of $10.40 in Sight

If this breakout holds strong, the inverse head and shoulders pattern is pointing to a potential move toward $10.40. That's a whopping 37% above current levels! And get this - that target also lines up with the 24.7% Fibonacci retracement level, making it even more significant.

Smart Wallet Announcement Fuels Rally

Part of this insane rally can be traced back to Uniswap's June 10 announcement of its new Smart Wallet. This bad boy is set to streamline onchain interactions by ditching manual token approvals and enabling features like gas abstraction. Talk about a game-changer!

Regulatory Clarity Sparks Optimism

Adding fuel to the fire, hopes of regulatory clarity in the U.S. have been sending bullish vibes through the market. On June 9, SEC Chair Paul Atkins dropped a bombshell, indicating that the agency is working on an "innovation exemption" framework to make life easier for DeFi platforms. This has sparked renewed optimism across the crypto space, with many dreaming of a "DeFi Summer 2.0" revival.

Uniswap at the Forefront of the Rally

As one of the biggest and most widely used decentralized exchanges out there, Uniswap has been riding this wave like a pro. Daily active addresses on the Uniswap network have absolutely exploded by 92% in the last 24 hours. That's a clear sign that user engagement is coming back strong as the bullish momentum builds.

Bitcoin's Recovery Provides Additional Support

And let's not forget about Bitcoin's recovery, which has been giving UNI an extra boost. Bitcoin climbed above $110,000 on hopes tied to U.S.-China trade negotiations in London. It's all connected, baby!

Key Support Levels to Watch

Now, even with all this momentum and bullishness, traders are keeping a close eye on a key support level at $8.20. That's the 23.6% Fibonacci retracement, and it often acts as the first line of defense during a healthy uptrend. If UNI can hold this level, the bullish party can keep going strong. But a drop below could lead to some short-term consolidation or a minor pullback before the uptrend resumes.

Potential Invalidations to Monitor

And here's the deal - a decisive move below $7.50 would totally invalidate this bullish structure. In that case, UNI could retrace further toward $4.70, where stronger buying interest might step in to save the day.

Disclosure

Just a heads up: this article isn't investment advice. It's all for educational purposes, so do your own research and make your own calls!