Uniswap’s native token (UNI) is showing signs of potential breakout momentum following a strong performance across multiple timeframes.
Overall, the cryptocurrency has posted impressive gains, with data showing increases of 3% in 24 hours, 21.1% over seven days, and a substantial 73.7% yearly return.
Uniswap Potential Breakout
According to analysis from Rekt Capital, UNI has demonstrated remarkable strength after successfully retesting the critical $7.21 Range Low support level.
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This retest is characterized by downside wicking (marked by a green circle in the analysis) and has served as a trigger for the recent rally.
Even though the token is positioning itself for a potential breakout from its current range, the analyst stated that confirmation remains pending.
What Should UNI Do To Confirm a Breakout?
For a confirmed breakout on the monthly timeframe, UNI needs to:
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- Secure a monthly close above the $8.36 range high resistance
- Successfully retest this level as support.
- Continue upward momentum toward the orange highs.
However, with several weeks remaining until the monthly close, traders are also monitoring shorter timeframe developments.
The weekly timeframe presents an alternative breakout scenario through a downtrending channel formation.
A weekly close above the channel’s diagonal resistance could accelerate the breakout timeline. This could potentially negate the need to wait for monthly confirmation.
At present, UNI trades below the channel resistance, and without a confirmed Weekly Close above this level, the possibility of rejection remains crucial.
In the absence of a bullish weekly close, analysts expect continued consolidation within the established range.
UNI’s current price remains 79.9% below its all-time high of $44.92 reached on May 3, 2021. However, it maintains a substantial 774.8% increase from its all-time low of $1.03 recorded in September 2020.
Recent trading has occurred within a 7-day range of $6.73 to $9.58.
Recent Milestones by Uniswap
Supporting the technical analysis, Uniswap Labs has recently achieved major milestones. The teams bridging capabilities witnessed over $13 million in volume on November 3.
In addition, they surpassed 1 million uni.eth username registrations. These developments demonstrate growing ecosystem adoption.
https://twitter.com/Uniswap/status/1852346857181061600
For traders and investors monitoring UNI’s price action, several key levels and scenarios require attention:
- The $7.21 Range Low as crucial support
- The $8.36 Range High as immediate resistance
- Weekly channel resistance as a potential early breakout trigger
The analysis suggests maintaining a balanced approach, watching for confirmation of breakout scenarios while remaining aware of potential consolidation continuation.
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