Uniswap Breakout Targets $42.49 as Governance Proposal Fuels Bullish Momentum

Uniswap breaks its multi-year descending trendline, marking a structural shift that signals potential transition from accumulation to expansion in market momentum.

Analyst JavonMarks projects a $42.49 breakout target, derived from a long-term accumulation range and base-to-neckline projection pattern.

CEO Hayden Adams introduces Uniswap’s first governance proposal to activate protocol fees, triggering a sharp 38% surge in UNI price.

Uniswap ($UNI) has entered a new technical phase after breaking above a multi-year descending trendline that defined its bearish cycle since 2021. The move signals a potential structural reversal, drawing attention from market analysts and long-term investors.

Breakout Signals End of Long-Term Compression

Market analyst Javon Marks pointed out that Uniswap’s price has recently exited from the long compression period, indicating a revival in the strength of the market structure. The breakout through the descending trendline is a clear shift from bearish to bullish momentum, indicating a shift towards a larger expansion phase.

The price has consistently respected a horizontal demand zone highlighted in pink on Marks’ chart. This area served as a key reaccumulation region, where buyers repeatedly entered to absorb selling pressure. Each retest of the zone attracted strong buying activity, reinforcing it as a robust institutional accumulation level.

According to Marks, the recent wick rejection from this support zone resembled the “spring phase” described in Wyckoff theory — a phase where liquidity is reclaimed, and sellers are cleared out before an upward move. This technical behavior indicates potential for a sustained markup phase, provided price stability continues above the demand zone.

Governance Proposal Fuels $UNI’s 38% Price Jump

Cointelegraph reported that Uniswap CEO Hayden Adams introduced the protocol’s first governance proposal aimed at activating protocol fees. The proposal aims to align incentives across the Uniswap ecosystem under a model that compensates users and liquidity providers

After the announcement, $UNI went up 38% as traders appeared to regain confidence in the project for its governance and revenue. Additionally, this price movement occurred at the same time as the breakout confirmation mentioned by the analysts, adding to the bullish argument including Uniswaps next price target

The governance development arrives at an important time for the token while technical and fundamental conditions seem to align. The introduction of fee mechanisms could enhance ecosystem sustainability, potentially improving investor sentiment as Uniswap’s growth outlook evolves.

Technical Path Points Toward $42.49 Target

Javon Marks projected a breakout target of $42.4941605, derived from the measured move of Uniswap’s long-term accumulation range. The next resistance lies between $11.8 and $13.2, identified as a key validation zone that could determine the pace of further price expansion.

If the higher low structure above the accumulation zone holds, the chart setup suggests room for a steady climb toward the macro target. This level aligns with the projected path to reclaim Uniswap’s 2021 highs, implying a possible upside exceeding 400% from current trading ranges.

The market now observes how $UNI performs around near-term resistance as it transitions from a period of accumulation to potential expansion. Maintaining structure above the pink demand zone remains crucial for sustaining the bullish trajectory toward the $42.49 breakout objective.

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