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

Uniswap shows strong signs of a bullish reversal after the outbreak of a reversed head and shoulder pattern on the daily map.

According to data crypto.news, Uniswap (uni) uni shot more than 20% in the last 24 hours, and reached a peak of $ 8.61 on 11 June, an increase of 84% compared to the LOS Point of April. Market capitalization has surpassed $ 5 billion and reversed that of Aave (Aave).

In the meantime, the daily trade volume increased by more than 150% to almost $ 1.39 billion in the previous day. In the Derivatenmarkt, the open interest rose by 54% to a record of $ 713 million, which shows that more traders bet. The long/short ratio is also above 1, which usually means that more people expect prices to rise.

From a technical point of view, Uni seems ready for more persistent profits, after he has broken the daily graph from several bullish patterns.

Uni broke from an inverted head and shoulders and confirmed it with a strong bullish candle. Earlier this week it was also a Golden Cross, when the 20-day advancing average crossed over 50 days, a common purchase signal, as previously reported by crypto.news.

To add to the Momentum, Uni is broken from a month -long trend defined by lower highlights and lower lows. It is now above the most important resistance, and both the MACD and the RSI indicators are upwards.

If the breakout remains intact, the opposite head and shoulder pattern points to a potential movement to $ 10.40, about 37% above current levels. That target is also in accordance with the 24.7% Fibonacci retracement level, which adds more weight to its importance.

The current rally seems to be partially powered by Uniswap’s 10 June announcement From the new smart wallet, which is aimed at streamlining onchain interactions by removing manual token approvals and making functions such as gas untraction possible.

Further hope for regulatory clarity in the US may have further contributed to the Bullish Sentiment. On June 9, SEC chairman Paul Atkins indicated that the agency is working on a “Innovation exemption” framework to illuminate the road to the Defi Platforms market.

The announcement led to renewed optimism on the cryptocurrency market, where many consider it a potential catalyst for a revival “Defi Summer 2.0”.

Since Uniswap is one of the largest and most used decentralized exchanges, it is special to respond to these developments.

Daily active addresses on the Uniswap network have risen 92% in the last 24 hours, a strong signal that uses user involvement as Bullish Momentum builds.

The Rally of Uni is also supported by Bitcoin’s recovery, where it was actively over $ 110,000 climbing in hope coupled with American trade negotiations in London.

Even with strong momentum and bullish indicators, traders look closely aware of an important support level at $ 8.20, which corresponds to the 23.6% Fibonacci racement.

This level often acts as the first support line during a healthy upward trend, making it a critical zone to hold for a continued bullish momentum. A drop below this can cause consolidation in the short term or a small withdrawal before the upward trend is resumed.

But a decisive movement under $ 7.50 would invalidate the current bullish structure. In that case, Uni could continue to return to $ 4.70, where a stronger purchase interest could appear again.