Uniswap (UNI) has experienced a dramatic surge in price over the past week, climbing by a robust 38%, reaching highs not seen in nearly five months. On November 12, 2024, the token saw a swift 17.46% rally within just one hour, pushing its price from $9.16 to $10.76. This breakout marks a significant shift in Uniswap’s price action, and analysts are speculating that further gains are on the horizon.

Uniswap’s Rally: A Breakdown of Key Price Movements

For the past several months, Uniswap’s price had struggled to break past the $8 resistance level, lingering under this barrier in September and October. However, a notable change occurred on November 6, when the $9 region flipped from resistance to support. This shift signaled to traders that the bulls were gaining control, and the price began to steadily climb higher.

The breakout above the 78.6% Fibonacci retracement level at $8 was a crucial indicator of strong bullish sentiment, signaling a potential continuation of the rally. The $9 region now serves as a solid support level, and despite some short-term dips, UNI has been able to push above key resistance levels in recent days.

Market Sentiment: Strong Buying Pressure

The surge in Uniswap’s price has been driven by heavy buying pressure. As of now, the coin is trading at levels that have not been seen in five months. On the daily chart, the On-Balance Volume (OBV) indicator shows consistent higher lows, reflecting sustained buying activity. Additionally, the Relative Strength Index (RSI) is currently at 68, which suggests that while the token is approaching overbought conditions, a bearish divergence has yet to form, allowing room for further price appreciation.

The market structure on the daily chart remains bullish, and many traders expect the positive momentum to continue. The Fibonacci retracement levels suggest that the next resistance levels for UNI are $9.93 and $11.29. If these levels are breached, it could signal a more significant rally in the weeks ahead.

Potential Price Pullback and Key Support Levels

Despite the bullish outlook, some analysts believe a short-term pullback is possible before the next leg up. Data from MobChart reveals significant limit sell orders around the $11 and $12 levels, indicating that these price points could act as resistance in the near future. Meanwhile, there are strong limit buy orders clustered around the $9 and $9.20 levels, which could act as support if the price retraces.

A retest of these lower support levels would not be surprising, and it could offer traders an ideal entry point before another push higher. Given the current market dynamics, UNI may hover around the $9 region for a short period before attempting to test the $11 to $12 range again.

What’s Next for UNI?

Uniswap’s recent performance suggests a bullish outlook for the token. The breakout past $8 was a clear sign of bullish conviction, and with strong buying pressure behind the move, the $11-$12 price range could be tested in the coming weeks. However, traders should keep an eye on potential dips to the $9 region, where strong support could keep the uptrend intact.

As the broader crypto market continues to gain momentum, Uniswap’s price action remains one to watch closely. If the token continues to hold above the $9 support and break through the $11-$12 resistance, it could set the stage for a more sustained rally into the end of the year.