Uniswap Poised For Breakout: Will Bulls Push Uni Above $7.06?

Uniswap price is trading within an ascending triangle, signaling a potential rally ahead. A breakout above $7.06 could propel UNI toward $9.38, supported by bullish on-chain data.

Uniswap (UNI) is currently trading within the boundaries of an ascending triangle pattern, a formation that typically signals a bullish breakout is imminent. The price action is supported by on-chain data, which shows a negative Exchange Flow Balance and decreasing exchange supply, both indicating that a rally could be on the horizon.

Uniswap price has formed two higher lows and three relatively equal highs since August 2. This consolidation has created an ascending triangle on the daily chart, a bullish technical pattern. The potential breakout target is determined by measuring the distance between the first swing high and the first swing low and adding it to the breakout point. As of Thursday, Uniswap is trading 1.75% higher at $6.86, still within the triangle formation.

If UNI successfully breaks out by closing a daily candlestick above the weekly resistance of $7.06, the 35% measurement projects a target of $9.38. However, traders should remain cautious, as there is daily resistance at $8.19 that could cause a brief slowdown. Despite this, both the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are positioned well above neutral, reducing the likelihood of a significant pullback before reaching higher targets.

Supporting this bullish narrative, Santiment’s Exchange Flow Balance shows a strong negative shift, indicating that more UNI tokens are leaving exchanges than entering. This decline from 12,250 UNI to -1.85 million between September 4 and September 5, and from 7,015 to -1.05 million between Sunday and Monday, shows increased investor confidence and accumulation.

Additionally, Uniswap’s Supply on Exchanges has declined by 4.7%, as more holders move UNI into cold wallets, further signaling bullish sentiment among investors.

While the technical indicators and on-chain data point to a bullish breakout, caution is still warranted. A daily close below $5.54 would invalidate the bullish thesis and could trigger a 16% drop, with the next support level around $4.70, last seen on August 5.

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