Uniswap tests critical resistance – Can UNI break free?

Uniswap (UNI), the native token of the leading decentralized exchange protocol, just delivered one of those pivotal moments that makes technical traders sit up and pay attention. After a powerful rally from the $5.00 lows in late October, UNI charged straight into a formidable obstacle—a descending resistance trendline that's been capping upside since the token peaked near $20.00 earlier this year.

What happened next? A textbook rejection.

The chart tells a compelling story. That yellow trendline slicing down from the highs isn't just a line on a screen—it represents months of selling pressure, a ceiling that's turned back every rally attempt throughout 2025. When UNI surged into the $10.00-$10.50 zone recently, bulls had their moment of hope. But the trendline held firm, and price got turned away with authority. That circled rejection point around $10.00 marks the latest in a series of failed breakout attempts, and it's left UNI retracing back to current levels around $8.73.

So what does this mean for traders right now?

The bearish case is straightforward. This trendline has proven itself as reliable resistance. Each touch has resulted in renewed selling, and the pattern of lower highs throughout the year suggests the path of least resistance remains downward. If UNI can't reclaim and hold above $10.00, we could see another leg down toward the $7.00-$7.50 support zone, or potentially a full retest of those $5.00 lows. Conservative traders might wait for a daily close back below $8.00 as confirmation before considering short positions, with stops above that rejection zone near $10.50.

But then there's the bull case, and it shouldn't be dismissed. UNI just printed one of its strongest rallies in months, climbing nearly 100% from the October lows. That kind of momentum doesn't appear out of thin air—it suggests accumulation and renewed buying interest. The question becomes: was that rejection the final exhale before a breakout, or just another false start?

Bullish traders are watching for a different scenario entirely. If UNI can consolidate here around $8.50-$9.00 and build a base, another run at that trendline becomes likely. The real fireworks start if price can punch through and close above $10.50 on strong volume. That would invalidate months of bearish structure and potentially trigger a squeeze toward $12.00 and beyond, as shorts scramble to cover and momentum buyers pile in.

Volume will be the tell. Watch for increasing participation on any retest of resistance—that's what separates failed breakouts from genuine trend changes.

The risk management framework is clear. For bulls eyeing dips, consider entries on pullbacks toward $8.00 with stops below $7.50. Target that trendline resistance near $10.00-$10.50 for partial profits, then let runners ride if the breakout materializes. For bears, the rejection zone offers a logical shorting opportunity on any bounce back toward $9.50-$10.00, with stops above $10.75 and targets down at $7.00.

What invalidates the analysis? A decisive daily close above $10.50 flips the script entirely and suggests the downtrend is over. Conversely, a breakdown below $7.00 would likely accelerate selling toward those cycle lows.

Uniswap sits at a technical inflection point. The descending trendline has defined 2025's price action, and UNI just got turned away from it again. But the strength of that October rally hints at something brewing beneath the surface. Whether this becomes a continuation pattern lower or the setup for a major reversal depends entirely on what happens at that trendline next. One thing's certain—this chart deserves your attention.