Uniswap (UNI) is showing signs of a potential breakout, forming an Inverse Head and Shoulders pattern on the 4-hour chart, which could lead to a significant price increase.
Formation of Inverse Head and Shoulders
The 4-hour chart of UNI reveals a well-formed Inverse Head and Shoulders pattern. The neckline is positioned at $11.50, which has repeatedly acted as strong resistance in recent sessions.
Breakout Targets and Technical Structure
The structure features a left shoulder, a lower head, and a right shoulder, with the neckline serving as the breakout trigger. If this level is breached, the target price is $16.17, indicating a potential 40% increase from the breakout point.
Volume Trends and Sentiment Confirmation
Volume data supports the bullish structure, with trading activity increasing alongside price movements. An increase in volume typically indicates positive market sentiment and helps avoid false movements.
Upcoming trading sessions will determine whether a breakout will occur at the $11.50 level and if UNI can establish itself above this critical level.
