Uniswap's recent breakout above a long-term descending resistance trendline has sparked renewed interest in the cryptocurrency's prospects. After months of bearish pressure, UNI finally broke free from the trendline, which had controlled price action for an extended period.
The breakout is significant because it marks a change in market structure, and momentum indicators are also improving. The weekly Relative Strength Index (RSI) has moved above its descending resistance line, while the stochastic RSI is forming a fresh bullish crossover from oversold territory.
However, despite the technical improvement, UNI's price remains challenging the $3.90 horizontal resistance zone. This level previously acted as a major support before the breakdown, and the cryptocurrency needs to reclaim it to validate a broader trend reversal.