Uniswap (UNI) Breaks $5.40 Resistance, Eyes $7.45 Next Major Target

• Uniswap (UNI) breaks above $5.40, signaling bullish momentum.
• Short-term resistance lies at $6.20–$6.50.
• Weekly RSI and MACD still favor a bearish trend.
• Uniswap fees remain strong despite the overall downtrend.

Uniswap (UNI) has formed a falling wedge on the 4-hour chart, marked by converging downward-sloping trendlines. Falling wedges typically indicate a bullish reversal when the price breaks above the upper line. Recently, UNI broke this resistance around $5.40. This breakout suggests potential upward momentum, with the next target set near $7.45, implying roughly 40.7% upside from the current $5.34 level.

The token has been in a downtrend since mid-November after peaking near $10. Within the wedge, price formed lower highs and lower lows, typical of a consolidation before a reversal. Strong bullish candlestick activity above $5.40 shows buyers gaining control. If momentum continues, UNI may reverse the short-term downtrend, aiming for intermediate resistance levels at $6.20–$6.50 before reaching the main target.

Immediate support lies between $5.10–$5.20, near the wedge’s lower boundary. The breakout above $5.40 now serves as support after previously acting as resistance. Sustaining the rally requires follow-through volume to confirm strength. Traders should monitor $5.10–$5.20 to manage risk. Next resistance zones are $6.20–$6.50, with the primary target around $7.45.

Also Read: Uniswap (UNI) Price Surges 52%: Bull Flag Signals $14 Target

Uniswap Indicators Suggest Downside Pressure May Continue

The RSI for the week is approximately 37, which is below the halfway mark at 50 and reflects a bearish trend. The RSI is not oversold at this stage, indicating there may be further downward pressure on the price. No bullish divergence appears on the chart at this time.

The MACD line is positioned below the signal line with a negative and expanding histogram. This depicts growing bearish momentum and strengthens the prevailing bearish trend. There are neither bullish signals nor a reduction in the histogram to support the notion of an upcoming reversal.

October Marks Highest Weekly Fee Surge

The data illustrates Uniswap weekly fees in terms of the protocol over June to December, ranging between $10M and $40M. The use of Uniswap picked up in late summer, culminating in October at approximately $40M, to decline through December. Uniswap has remained strongly used with TVL in excess of $3.88B.

Given that Hayden Adams is also submitting a UNification proposal, these fees gain even more importance. By enabling protocol fees on v2 as well as v3, burning 100 million UNI, as well as directing Unichain sequencer fees directly into the protocol, it is clear that there is a direct link between usage and a decrease in supply. UNI’s token economics just became even more tangible.

Also Read: Uniswap UNI Price Rally: Experts Eye $12 Milestone After Governance Boost