UNI Tests Crucial Resistance as Bullish Pressure Builds

Uniswap’s UNI token is displaying a notable shift in technical structure on the daily chart, as buyers continue to defend higher levels following a strong recovery from recent lows. 

After a prolonged period of weakness, the crypto has managed to stabilize above key short-term support zones, signaling that bearish pressure is fading and that market sentiment is gradually improving.

Daily chart for UNI/USD (Source: GeckoTerminal)

Recent daily closes show consistent follow-through to the upside, pushing UNI firmly into the mid-$6 region. This move suggests that buyers are no longer reacting defensively but are beginning to assert directional control. 

While UNI has not yet confirmed a full trend reversal, the broader structure increasingly favors continuation rather than a sharp retracement.

Moving Averages Signal Early Trend Transition

UNI’s relationship with its short-term and medium-term moving averages provides an important clue about trend direction. The price is now holding above its short-term averages, which have started to turn higher after a prolonged downward slope. This change reflects improving short-term demand and indicates that recent bullish price action is influencing the broader trend structure.

The narrowing distance between short-term and medium-term averages suggests that bearish momentum is losing dominance. 

If the price continues to consolidate above those averages, it would reinforce the idea that UNI is transitioning from a corrective phase into a recovery-driven structure.

UNI’s Momentum Indicators Reflect Strengthening Buyer Control

Momentum oscillators confirm the improving outlook. 

Relative strength has climbed steadily from oversold conditions into a neutral-to-bullish zone, indicating that selling exhaustion has given way to renewed accumulation. This shift suggests UNI still has room to move higher before entering overheated territory, making controlled pullbacks structurally healthy rather than concerning.

The MACD structure also supports that interpretation. 

Momentum has flipped from negative to positive, signaling that downside pressure has weakened materially. The expanding histogram reflects increasing bullish conviction rather than a fading bounce, often a key ingredient for sustained upside continuation.

Resistance Zones Now Define the Next Test

As UNI pushes higher, resistance levels become increasingly important. 

The region between $6.49 and $6.66 represents a critical supply zone where sellers previously capped rallies. A decisive daily close above this area would strengthen the bullish case significantly, opening the door for continued upside momentum and trend extension.

If the price struggles to clear that band, UNI may enter a consolidation phase as traders reassess positioning. 

Such a pause would not necessarily invalidate the bullish structure but could delay further upside until fresh demand emerges.

Support Structure Remains Well Defined

On the downside, UNI benefits from clearly layered support. 

The area between $6.25 and $6.13 stands out as an important demand zone, aligning with recent consolidation and short-term buyer interest. Holding above this range keeps the recovery structure intact and supports the case for higher lows forming on the daily chart.

A deeper pullback toward lower levels would only raise concern if accompanied by increasing sell pressure and a loss of key structural support. As long as buyers continue to defend these zones, downside moves are more likely to be corrective than trend-reversing.

Order Book Signals Strong Liquidity Clusters

Order book data adds further context to UNI’s near-term outlook. 

A notable bid wall near $6.31 suggests strong buyer interest just below the current price, limiting immediate downside risk. Additional buy-side liquidity around the $6 and $5 regions reinforces the idea that deeper declines would require significant selling momentum.

On the upside, sell-side liquidity is concentrated near $6.41 and more heavily around the $7.00 level. 

Those areas are likely to act as short-term barriers. Clearing them could trigger accelerated upside moves as overhead supply thins, potentially leading to sharper price discovery beyond resistance.

Trade Scenarios for Bulls and Bears

From a trading perspective, bullish strategies favor pullbacks toward established support zones while momentum remains constructive. Long entries near defended demand areas offer favorable risk-to-reward setups, with profit-taking typically aligned near resistance clusters.

Short positions are more tactical under current conditions and generally depend on clear rejection signals at resistance or a breakdown below key support accompanied by rising bearish momentum. 

Without those signals, the broader bias leans toward continuation rather than reversal.

Outlook Remains Cautiously Bullish

UNI’s daily chart reflects a market emerging from a bearish phase and building a recovery-oriented structure. 

While confirmation above resistance is still required, improving momentum, defended support, and favorable order book dynamics suggest that buyers currently hold the advantage.

Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.