The native coin of decentralized exchange Uniswap, UNI, is trading at $3.70. This digital asset has achieved a gain of 4.05 percent in the past 24 hours, as well as for the week; it has gained just over 15 percent. After going through a boring rangebound movement for months, the token is finally beginning to follow interesting price action. Bears defended the $3.00 support multiple times in the past month, enabling UNI to rebound from its June bottom of $2.47.
The next challenge is the $4.00 level, which rejected the price during the month of May. If this digital asset breaks above that level, it is expected to represent UNI’s strongest technical improvement as of the beginning of the year and can get attention from the market bulls.
The level of $3 has turned into a strong support
UNI came under considerable pressure throughout the first half of the year. Following an initial drop from over $5.50 in January, the currency moved between the $3.00 and $4.00 levels for multiple months. A tentative breakthrough over the $4.00 barrier in May proved unsuccessful, and the asset subsequently slumped to its lowest of $2.47 at the beginning of June.
Since then, the chart has been refining. UNI managed to retake its $3.00 level, and it has been able to hold that support during multiple pullbacks through June and into early July. Each dip seems to bring with it interested buyers, demonstrating demand around this price area.
Rather than forming new lows, UNI has been consistently printing higher lows, which is a much healthier sign than seen earlier this year. Most markets have to construct a solid base before attempting any significant breakout and UNI seems to be in the process. With support now established near $3.00, attention shifts back to $4.00, the same resistance that capped the previous rally.
What technical indicators depict
Technical indicators are supportive, such as RSI7 71.97, RSI14 67.87, and RSI21 62.96. At this point, the short-term RSI has entered into the overbought zone. It seems buying is gaining traction in the last week.
The MACD also remains bullish. The signal line is below the MACD line at the time of writing. The histogram is on the positive side, which is depicting that the upside momentum is building and may sustain instead of fading away. At the same time, the long-term RSI readings are under the extreme points and this allows the asset to continue the upside trend with the buying demand intact.
UNI is also trading comfortably above the daily pivot near $3.55, keeping short-term momentum in favor of buyers. While the rally may slow after such a strong move, the indicators currently support the broader recovery.
The subsequent biggest resistance is still $4
The $4.00 level is now the biggest obstacle for UNI. It rejected buyers during May and also sits close to the 200-day EMA, making it one of the strongest resistance zones on the chart. A successful breakout above $4.00 would strengthen the longer-term recovery and could open the way toward the next Fibonacci targets at $4.20, $4.67, and $5.19. If buyers pause before reaching that level, a pullback would not necessarily be bearish. Support around $3.31 and $3.15 could provide a base for another attempt higher, while only a move back below $3.00 would weaken the current recovery.
The rally is also supported by improving trading activity rather than a single burst of buying. Daily volume has climbed to about $205.5 million against a $2.3 billion market cap, while hourly price action shows UNI steadily rising from around $3.25 earlier this month to $3.70 today. Each small pullback has attracted buyers instead of heavier selling, suggesting demand has remained consistent throughout the move. Even so, UNI is still nearly 60 percent below where it traded a year ago, meaning this remains a recovery within a broader downtrend rather than a complete trend reversal.
