Uniswap (UNI) is showing signs of extending its recovery after breaking out of a massive falling wedge pattern that had constrained the token for nearly two years.
UNI hit an intraday high of $7.065 on Thursday, September 17, putting it more than 200% above its June lows.
The technical breakout, improving momentum, and stronger protocol fundamentals could leave the token positioned for an advance toward $12.70 if buyers clear a crucial resistance level.
A move to $12.70 from current levels would represent an upside of roughly 80%.
Token burns strengthen UNI’s fundamentals
UNI’s technical breakout has coincided with changes to the token’s underlying economics.
Following the implementation of the UNIfication proposal in December 2025, protocol fees generated by enabled Uniswap markets have been used to burn UNI tokens, introducing a mechanism that permanently removes tokens from circulation.
The burn mechanism became particularly visible in September, when approximately 184,000 UNI, valued at roughly $1.15 million at the time, was reportedly burned in a single day.
Continued burns could gradually reduce circulating supply if protocol activity remains strong, although the effect on UNI’s market price ultimately depends on broader supply and demand conditions.
Uniswap has also continued expanding its presence across the wider blockchain ecosystem.
The decentralized exchange has extended its reach to Robinhood Chain and Circle’s Arc network, potentially opening additional markets for liquidity and trading activity.
This has resulted in Uniswap’s trading volume surging significantly in recent months.
Large holders have also shown signs of accumulating UNI.
A wallet linked to BitMEX co-founder Arthur Hayes reportedly acquired approximately 284,000 UNI worth around $2 million.
Together, UNI’s falling wedge breakout, token burns, and ecosystem expansion have strengthened its recent momentum.
Still, the $7.78 200-week EMA remains the key technical barrier. Clearing that level on a weekly basis would strengthen the technical case for an eventual test of the $12.70 resistance zone.
UNI breaks out of two-year falling wedge
UNI’s latest rally follows a breakout from a falling wedge that began forming after the token peaked near $19.50 in late 2024.
During the subsequent decline, UNI consistently produced lower highs and lower lows within two converging downward-sloping trendlines.
Falling wedges are commonly interpreted as potential bullish reversal structures when price breaks decisively above the upper boundary.
UNI broke above the wedge in August and has continued climbing since then, adding weight to the bullish setup.
The token has also reclaimed several important long-term exponential moving averages.
Its 20-week, 50-week, and 100-week EMAs sit around $4.59, $4.89, and $5.91, respectively, placing all three below UNI’s current market price.
However, bulls face another significant hurdle at the 200-week EMA near $7.78.
A decisive weekly close above $7.78 could confirm additional upside momentum and put the $12.70 region in focus.
The target corresponds with the 0.236 Fibonacci retracement level and previously served as a notable resistance area during UNI’s 2024 rally.
UNI’s weekly Relative Strength Index (RSI) has also risen to approximately 65, indicating strong buying momentum while remaining below levels typically associated with deeply overbought market conditions.
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