Uniswap (UNI) has been one of the more volatile altcoins in the crypto market over the past year, but it’s currently showing signs of recovery. After enduring significant losses year-to-date (YTD), UNI is bouncing back, with some analysts forecasting a potential 30% surge in the coming weeks. As a leading decentralized exchange (DEX) built on Ethereum, Uniswap’s price has often mirrored Ethereum’s price action, and its recent performance reflects this correlation. UNI’s price surged over 12% in the last seven days, trading around $5.87 as of April 25, 2025. This recovery has fueled optimism among traders, especially after a year of underperformance.

The Current UNI Price Action

UNI’s price action has shown some promising signs of a potential reversal. In the past few days, the price has broken out from a descending pattern known as a “falling wedge,” which often signals bullish momentum when broken to the upside. UNI has consistently closed above a key logarithmic trendline, established earlier this year. This has been a positive development, and the token’s price is now hovering above the critical $5.50 level.

The daily Relative Strength Index (RSI) has risen above the 50 level for the first time in 2025, which is another bullish indicator. The RSI is a momentum indicator that helps assess whether a particular asset is overbought or oversold. When it rises above 50, it indicates increasing bullish momentum. Furthermore, UNI’s Moving Average Convergence Divergence (MACD) is showing signs of a potential bullish crossover, as the MACD line is about to cross above the zero line. This is another key signal that the momentum might be shifting toward the upside.

UNI’s correlation with Ethereum (ETH) has historically been strong. When Ethereum experiences a significant price movement, Uniswap tends to follow suit. As Ethereum recently surged above $1,800, Uniswap also started showing positive movement, indicating that a similar rally could be in store for UNI. If Ethereum continues its upward momentum and moves toward $2,000 in the coming days, UNI could see its price rise by as much as 30%, potentially breaking above the $7.50 mark.

Market Sentiment and Technical Indicators

The market sentiment surrounding Uniswap has also shifted in a more positive direction. As of the latest data from Coinglass, UNI’s Open Interest (OI) in futures markets has surged by 9%, signaling increasing market participation and growing investor confidence. Open Interest represents the total number of outstanding contracts, and an increase in OI often indicates that traders are expecting a price move in the near future. This uptick in futures market activity is a strong signal that traders believe UNI’s price will continue to rise.

Another key indicator for Uniswap’s price is its transaction volume. Over the past week, UNI saw a significant increase in large transactions, with a total surge of $304 million in large transaction volume. Large transaction volume often reflects institutional interest or whale activity, and this suggests that significant players in the market are positioning themselves for the next move in UNI’s price. With only 22% of UNI holders in profit at the moment, there is a large potential for growth if the market sentiment continues to improve.

Fundamental Factors Driving UNI’s Growth

One of the key factors driving Uniswap’s recovery is the favorable regulatory environment, particularly under the pro-crypto stance of the Donald Trump administration. Earlier this year, the U.S. Securities and Exchange Commission (SEC) dropped its investigations into Uniswap, effectively removing the regulatory cloud that had previously loomed over the project. This move has provided a sense of security for investors, as it signifies that Uniswap is no longer under heavy scrutiny from U.S. regulators. As a result, Uniswap has seen its total value locked (TVL) grow to over $3.8 billion, with more than $1.67 billion in 24-hour trading volume.

The Uniswap protocol has long been a leader in the decentralized finance (DeFi) space, and with its reduced regulatory risks, it’s positioned for further growth. The return of institutional interest, as well as the continuous development and expansion of the Uniswap ecosystem, suggest that the project is well-equipped to thrive in the current market conditions. With decentralized exchanges continuing to gain popularity, Uniswap’s strong fundamentals make it an attractive investment option.

Key Levels to Watch

For UNI to continue its bullish trend, there are several key levels to watch. The $5.50 level is an important support zone, and as long as the price stays above this level, the path to higher prices remains clear. The next critical resistance level is around $7.50, and a successful break above this level could trigger further buying pressure, possibly driving UNI’s price up to $8 or beyond.

On the downside, a failure to hold above $5.50 could signal a potential pullback, with the price revisiting the $4.95 zone. Traders should watch for signs of a trend reversal, especially if UNI fails to maintain upward momentum and if broader market sentiment turns bearish.

Conclusion

Uniswap (UNI) is showing promising signs of a potential price surge, thanks to a combination of favorable technical indicators, rising market sentiment, and strong fundamentals. If the correlation with Ethereum holds and UNI can maintain its upward momentum, the price could surge by as much as 30%. However, caution is always advised, as market conditions can change quickly. Traders should watch key support and resistance levels closely, as they will likely determine UNI’s next move in the coming weeks.