Over the past week, the Uniswap price has gained strong bullish momentum, breaking out of a prolonged consolidation phase below $3.5. The latest upswing has pushed UNI toward the neckline of a parabolic recovery structure, helping the token recover most of the losses recorded in recent weeks. UNI has climbed over 8% to trade near $3.94, while its market capitalization surged to $2.5 billion. Trading volume also jumped by more than 25%, adding over $412 million in activity.
One of the key catalysts behind the rally appears to be the growing market buzz around Uniswap’s ‘V4 hooks,’ which are increasingly being viewed as a strong fundamental driver. Technically, UNI has reclaimed a crucial resistance zone, signaling a notable shift in market structure in favor of the bulls. However, volume remains near average levels despite a slight increase, suggesting the rally is being driven more by weakening selling pressure than aggressive buying demand.
This raises a critical question: can UNI sustain this bullish momentum through the month, or is the current move merely a short-term breakout?
As seen in the chart, UNI has printed consecutive bullish candles over the past few sessions, reclaiming the crucial $4 level with strong momentum. The RSI has surged into the overbought zone without showing any bearish divergence, indicating sustained bullish strength. Meanwhile, the CMF has climbed sharply to 0.40 after moving sideways near neutral levels for months, signaling a notable rise in capital inflows and buying pressure. This strengthens the possibility of a move toward the 1.0 Fibonacci level at $4.26.
However, steadily rising exchange reserves remain a concern, as increasing token inflows to exchanges could trigger short-term selling pressure.
The above chart shows UNI exchange reserves steadily rising toward 89.6 million tokens, indicating more supply is moving onto exchanges. Typically, increasing reserves hint at potential selling pressure, especially after a sharp rally. However, despite the rising reserves, UNI continues to hold above the key $4 level, suggesting buyers are absorbing the incoming supply.
If bullish momentum sustains, the price could advance toward the immediate resistance at $4.26, followed by $4.64 to $5. Conversely, a failure to hold above $4 may trigger a short-term pullback toward the $3.56 support zone before the next directional move.