Uniswap (UNI) Nears $11.50 Neckline With 40% Breakout Potential

Uniswap (UNI) has recently displayed a well-defined Inverse Head and Shoulders pattern on the 4-hour chart, signaling potential bullish momentum ahead of a key resistance level. The pattern is characterized by a left shoulder, a lower head, and a right shoulder, with the neckline positioned near $11.50. This level has acted as a consistent resistance point, with repeated attempts to break through met by stronger buying pressure, indicating growing accumulation and market readiness [1].

According to technical analysts, the breakout target from the pattern suggests a projected move toward $16.17 if the price successfully breaks above the neckline. This would represent a potential 40% price increase from the current level, aligning with traditional technical analysis strategies used in chart pattern identification [1]. The formation, therefore, provides a clear technical roadmap for short-term market expectations, offering both traders and investors a measurable target to monitor.

Volume data has also supported the bullish bias, with increasing trading activity observed alongside upward price movement. This rise in volume suggests stronger market participation and buyer conviction, reinforcing the likelihood of a sustained breakout rather than a false signal [1]. Typically, increased volume during upward price pushes is a key indicator of genuine momentum, reducing the chances of a retrace or failed attempt at the resistance level.

Uniswap (UNI) currently trades at $10.94, showing a 2.83% increase in the last 24 hours and a 10.78% rise over the past week. The trading volume has also increased, indicating higher market activity and suggesting that the token is nearing a critical juncture in its price action. Analysts have noted that if the neckline at $11.50 is successfully breached, the resistance level may transform into a support zone, providing further confirmation for long-term position trading [1].

CryptoBull_360 highlighted the pattern on social media, suggesting that UNI is on the verge of a “massive breakout” from the consolidation phase. The tweet emphasized the strength of the buying pressure observed during the retests of the neckline, indicating that the market is building energy for a potential upward move [1].

As the price tightens near this key level, the coming trading sessions will determine the validity of the breakout. Traders are advised to closely monitor both the price action and volume trends to confirm the sustainability of the move. A successful breakout would not only validate the pattern but also set the stage for a new trend in UNI’s short-term trajectory.

Source: [1] Uniswap (UNI) Forms Inverse Head and Shoulders Pattern Ahead of Breakout (https://coinmarketcap.com/community/articles/689be4b535f1ba43caa59747/)