Uniswap jumps 7% as UNI breaks above key trendline resistance

UNI, the governance token of Uniswap on Ethereum, rose 7% to $3.33 on Wednesday, breaking above a multi-month descending trendline that had capped its recovery since late last year.

"UNI is benefiting from a rotation back into fundamentally strong DeFi protocols as Bitcoin and Ethereum hold their ground," Jason Wu, an independent DeFi analyst, said. "The technical breakout above the trendline adds conviction that buyers are regaining control after months of consolidation."

Trading volume picked up sharply alongside the move, with the daily relative strength index climbing back above the neutral zone without entering overbought territory. The MACD also registered a fresh bullish crossover, signaling that buying momentum is building. Uniswap continues to rank among the highest-volume decentralized exchanges by total value locked, which stood at $4.8 billion across Ethereum and its L2 chains as of Wednesday, according to DefiLlama.

The next major resistance sits at the $3.40 to $3.50 zone. A decisive close above that level would confirm the breakout and open the door for a move toward $4.50, representing roughly 35 percent upside from current prices. On the downside, the former breakout trendline near $3.00 is expected to act as the first key support if profit-taking emerges.

What Drove the Move

The rally comes as capital rotates back into the DeFi sector, with investors showing renewed appetite for protocols with strong fundamentals following weeks of underperformance relative to Bitcoin. UNI had traded in a tight range below the descending trendline since December 2025, repeatedly failing to sustain breakouts above $3.00.

Uniswap's dominance in the decentralized exchange market has remained intact despite competition from forks and newer automated market makers. The protocol processed over $85 billion in monthly trading volume across all chains in June, according to The Block's data dashboard, reinforcing its position as the largest DEX by volume.

Key Levels to Watch

The $3.40 to $3.50 resistance zone represents the most immediate test for bulls. A failure to clear this area could lead to a retest of the $3.00 support level, where the ascending trendline now provides a floor. If sellers push below that, the next support sits at $2.70, the low from late June.

On the upside, a confirmed breakout above $3.50 would target the $4.00 psychological level before the major resistance at $4.50, a zone that has not been tested since October 2025. Sustained trading volume above the 20-day average will be the key signal traders are watching to validate the breakout's strength.

This article is for informational purposes only and does not constitute investment advice.