UNI price jumped 10% in 24 hours, but bulls must hold above the lower boundary of an ascending channel to keep bears at bay
Uniswap (UNI) saw the price of its governance token rise nearly 11% over the past 24 hours, including more than a 5% gain in the last hour. The token is currently trading around $3.30 against the US dollar and could see further upside in the coming days.
However, the likelihood of increased volatility next week could also introduce downward pressure that may push prices lower.
Bearish risk for UNI may be linked to the winding down of liquidity mining incentives. As noted previously, the market could see roughly $1.2 billion worth of UNI enter circulation for trading as yield farming incentives end.
UNI/USD Price
UNI prices have returned to $3.30 after bottoming at $1.76 earlier this month. Strong inflows of liquidity helped the price surge more than 35% over the past seven days and more than 80% since the low of $1.76.
Price action remains capped by the upper boundary of a rising parallel channel that has formed since the start of the month. If bulls sustain momentum and push above that upper limit, upside pressure could drive prices toward the $4.00 area.
Conversely, a trend reversal could see prices fall back to the channel’s midline. The lower boundary of the channel and the 20-day simple moving average (SMA) near $2.60 provide additional support.
UNI/USD 4-Hour Chart
On the 4-hour chart, technicals suggest bulls still hold the edge as they attempt to break above a weekly resistance line established since mid-October. The price is forming a higher candle and sits comfortably above the 20-SMA and 50-SMA.
An upward trendline also serves as support and could help sustain a near-term rally in UNI. Meanwhile, the Relative Strength Index (RSI) points toward overbought territory at about 65, but there remains room for further upside.
A bearish reversal would be confirmed if momentum shifts and bears push the price below the moving averages and the lower boundary of the ascending channel. A key level to hold is $3.03—the area around the 20-SMA. If prices break below the lower channel line, UNI/USD will likely re-test the 50-SMA near $2.70 and potentially the 100-SMA around $2.40. Long-term support remains at the supply wall near $1.76.