Uniswap (UNI) Broke Out From Descending Triangle — New Bull Phase Likely Started

Key Takeaways

• Breakout from descending structure signals a potential trend reversal.
• Fibonacci resistance near $7.86 may limit upside movement.
• Short-term correction ongoing before the next impulse wave.
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Uniswap (UNI) has recently rebounded from a major support zone, showing signs of a potential trend reversal.

The 4-hour chart indicates a breakout from a prolonged descending structure, while the 1-hour chart provides key insights into short-term corrective movements and possible next steps.

Analyzing Elliott Wave counts, Fibonacci retracement levels and RSI signals will help outline crucial price levels and potential outcomes.

UNI Price Analysis

The 4-hour chart highlights a clear downtrend in UNI since its peak at $19.35, with the price forming a descending wedge.

This pattern was completed, as UNI reached a major support zone between $5.40 and $6.00, on March 11, nearly reverting to the price from which the previous bullish period started.

The price has since bounced strongly, suggesting the start of a new impulsive structure.

Elliott Wave analysis indicates that UNI likely completed a five-wave corrective sequence (ABCDE) before breaking out of the wedge.

The breakout aligns with a bullish Relative Strength Index (RSI) divergence, confirming growing momentum.

The price has now surpassed the first resistance at $6.58 and is targeting the $7.86 level (0.786 Fibonacci retracement), which historically acted as a rejection point.

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UNI must hold above the breakout zone despite this bullish structure to sustain momentum. If the price fails to break above $7.86, it may revisit support at $6.58 or even deeper at $5.40 before resuming its upward trend.

A confirmed close above $7.86 would shift focus to higher resistance levels at $10.32 (0.618 Fibonacci retracement) and $12.04 (0.5 Fibonacci retracement), marking the next key bullish targets.

UNI Price Prediction

The 1-hour chart provides a closer look at UNI’s recent impulsive wave structure. The price surged past the $6.58 resistance, forming an extended wave (iii) before entering a corrective phase.

The ongoing pullback is likely forming an (a)-(b)-(c) structure within wave (iv), with potential support near $6.58 or $6.40 before a final wave (v) push.

A bullish scenario would involve a minor retracement to the $6.58–$6.40 zone, where buyers may re-enter to drive the price toward $7.86.

A break above $7.86 could confirm the continuation of the bullish impulse, targeting $8.50 or higher.

However, a bearish scenario would unfold if UNI loses momentum and drops below $6.40. This could lead to a deeper correction towards $6.00, invalidating the immediate bullish setup.

RSI on the 1-hour chart is neutral, suggesting room for further downside before a potential bounce. If RSI holds above 40 during the pullback, it would support the bullish continuation.

In summary, UNI is in a strong recovery phase, but must maintain support levels for further upside.

If wave (iv) completes within the expected range, wave (v) could extend toward $8.50, aligning with higher timeframe Fibonacci levels.

UNI’s breakout from a descending wedge is a strong bullish signal, but the next steps depend on its ability to hold support levels and break key resistance zones.

Key Levels To Watch

• Immediate Resistance: $7.86 (0.786 Fibonacci retracement).
• Key Resistance: $10.32 (0.618 Fibonacci retracement).
• Critical Resistance: $12.04 (0.5 Fibonacci retracement).
• Immediate Support: $6.58 (wave (iv) potential retracement zone).
• Critical Support: $6.00 (breakout retest).
• Short-Term Target for Wave (v): Above $8.50 if momentum sustains.
• Invalidation Zone: Below $6.00, signaling further downside risk.