UNI Surges 70% Since April 7, Breaking Multi-Month Downtrend

UNI, the governance token of the Ethereum-based Uniswap decentralized exchange, has maintained a sustained bullish momentum for the first time since the beginning of 2025. The crypto asset has returned seven bullish weekly candles in the past eight weeks, breaking out of a prolonged downward trend and setting up a classic bullish structure.

UNI’s price dropped from $19.469 in December 2024, experiencing a 76.5% drop in less than five months. However, the digital asset’s April 7 reversal proved significant after UNI’s massive surge in the first week of May introduced a new narrative for the cryptocurrency.

UNI’s early May rally tested the significant $7.50 resistance. Even though the price pulled back at the initial attempt, UNI bulls regrouped to push the price above that level, converting it into support as the digital asset confirms a new phase in its price development.

In the meantime, UNI tested another notable resistance last week by surging above the 0.236 Fibonacci level, which coincides with the psychological resistance around the $8 region. The price surged to $8.688 before retracing to close the week at $7.181. However, the decentralized exchange governance token resumed the upward movement by surging 14.32% in less than 48 hours.

UNI’s latest surge retested the 0.236 Fibonacci resistance, with the trading volume showing signs of notable momentum that could support a confirmed breakout above that resistance. Analysts expect UNI to break above that level and open the way for higher prices, with $10 looking more like the next notable target for the altcoin.

UNI, the native token of the decentralized exchange Uniswap, has experienced a significant turnaround in sentiment, with its price surging by 70% since April 7. This rally marks a reversal of a multi-month downtrend that saw UNI's price drop from $19.469 in December 2024 to a low point, experiencing a 76.5% decline in less than five months. The recent price movement indicates that the token might be ready to exit its long-term downtrend, with various technical indicators and on-chain data pointing toward a bullish storyline.

The surge in UNI's price is accompanied by a notable increase in Total Value Locked (TVL) on the Uniswap platform. Since April, the TVL has risen from $3.28 billion to $5.13 billion, reflecting growing confidence among users. Additionally, the number of monthly active users on Uniswap has doubled to 22.3 million, further underscoring the platform's increasing popularity and user engagement. This surge in user activity and TVL suggests that the sentiment towards Uniswap is improving, which is a positive sign for the token's future performance.

The bullish sentiment is also evident in the increased engagement on social media platforms. Mentions and interactions related to Uniswap on platforms like X, Reddit, and YouTube have surged, indicating a growing interest and positive sentiment among the community. This social media buzz, combined with the on-chain metrics, paints a clear picture of a turn in momentum for UNI.

Technical indicators also support the bullish case for UNI. The Supertrend indicator has turned bullish at the $6.294 level, signaling a change in trend after a prolonged bearish phase. The moving average framework shows that UNI bulls are attempting to break above the 200-day Exponential Moving Average (EMA) level, which, if successful, could lead to further significant advancements towards the $10 mark and beyond. The Relative Strength Index (RSI) at 56.26 indicates that momentum is building in favor of buyers without being in the overbought territory, suggesting there is still room for upward movement.

The record trading volumes, which have shown a 70% growth in daily trading volumes, are another promising indicator. This volume expansion is typically associated with large price movements and indicates that both institutional and retail players are gaining traction in the token. The MACD histogram is also developing bullish divergence, with the indicator trying to cross above the signal line. This technical development usually precedes price breakouts and provides additional confirmation of the bullish argument.

If UNI can sustain its recent gains and overcome critical resistance areas, the token could witness a significant recovery rally. This rally would likely see UNI back in the spotlight of decentralized finance investments, as the platform continues to attract more users and liquidity. The combination of improving on-chain metrics, increased user engagement, and supportive technical indicators suggests that UNI's bullish sentiment is well-founded and could lead to further price appreciation in the coming months.