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Uniswap (UNI) Reclaims $4.00: Breakout Recovery or Short-Term Bounce?

By Yvonne Kiambi

Yvonne Kiambi is a passionate and dynamic voice in the cryptocurrency and blockchain space. With a solid foundation in financial technology and blockchain research, she brings fresh insights into crypto. Her expertise stems from years of hands-on experience, backed by a journalism degree and a bachelor's in content marketing....

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The upwards move in Uniswap comes alongside renewed attention on protocol fee activation and fresh institutional narratives around on-chain real-world assets.

UNI Price Pushes Through $4.00 Resistance

Uniswap Price | Source: TradingView

After consolidating below the $3.50–$3.60 range, UNI broke higher with a decisive intraday expansion. The token is currently trading near $4.00, which shows a strong daily gain and one of its most notable single day moves in recent weeks.

Today’s session has ranged roughly between $3.49 and $4.27, showing aggressive buying pressure early in the move before mild intraday cooling.

The $4.00 price previously acted as short-term support during prior relief rallies and later flipped into resistance. Reclaiming this zone shifts near-term structure from defensive to constructive.

Volume has also expanded materially compared to recent averages. In crypto markets, breakouts without volume often fade quickly. The participation seen in this move suggests active positioning rather than thin liquidity spikes.

Momentum Improves as UNI Reclaims Trend Levels

On the daily timeframe, UNI has pushed back above its short-term moving averages. The 20-day and 50-day moving averages had been capping the price for several weeks. Clearing them signals improving short-term momentum.

The larger structural question revolves around the 200-day moving average, which still sits higher and defines the broader macro trend. Until UNI decisively reclaims that level, longer-term trend traders may remain cautious.

That said, reclaiming shorter-term averages often precedes larger trend shifts. If UNI can consolidate above $3.80–$4.00 and build a higher low, the probability grows of a sustained reversal.

RSI Signals Strength Without Overextension

The Relative Strength Index on the daily chart has moved into the mid-60s, reflecting strong buying pressure. Importantly, it has not yet entered extreme overbought territory above 70.

This positioning suggests that momentum is expanding but not overheated. In many recovery structures, RSI pushing into the 60–70 range marks the early stages of a trend expansion phase.

If RSI begins to diverge while price stalls near resistance, that would be an early warning sign of exhaustion.

Upside Targets if Momentum Holds

If UNI sustains acceptance above $4.00, the next resistance zone sits around $4.40–$4.60. This area previously acted as distribution during earlier recovery attempts.

A clean break above that region opens the path toward the $5.00 psychological level, which would likely attract both momentum traders and profit-taking activity. Beyond $5.00, the $5.80–$6.20 zone represents the next major structural resistance from prior breakdown points.

For bulls, the key is not just touching these levels but consolidating above them with steady volume.

Downside Risk and Invalidation Levels

Despite the strength, UNI remains within a broader multi-month corrective structure.

If price fails to hold above $3.80–$4.00 and quickly falls back into the prior range, this breakout could convert into a bull trap. The first meaningful support lies near $3.60, followed by the recent low around $3.49.

A breakdown below that level would invalidate the short-term bullish thesis and likely return UNI to range-bound accumulation conditions. In that scenario, traders would reassess whether the governance narrative was prematurely priced in.

Final Thoughts

Uniswap’s reclaim of $4.00 marks a meaningful short-term technical shift supported by improving momentum and renewed fee-capture narratives.

However, confirmation requires sustained acceptance above reclaimed resistance, the formation of higher lows on pullbacks, and continued volume expansion.

For now, UNI shows early signs of recovery rather than a confirmed macro reversal. The next few sessions around the $4.40–$5.00 region will likely determine whether this move evolves into a larger trend shift or fades back into consolidation.

Yvonne Kiambi is a passionate and dynamic voice in the cryptocurrency and blockchain space. With a solid foundation in financial technology and blockchain research, she brings fresh insights into crypto. Her expertise stems from years of hands-on experience, backed by a journalism degree and a bachelor's in content marketing.

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