UNI, the native token of the Uniswap decentralized exchange, jumped 6.42% in the last 24 hours to trade at $3.90. The move brings the token directly against a technical resistance level at $4.02, a price it has struggled to break through in recent sessions.
Resistance at $4.02
The $4.02 mark has acted as a ceiling for UNI since early this week. Each time the token approaches that level, selling pressure has emerged, capping further gains. A sustained break above $4.02 could open the door to a run toward $4.14 or higher, according to chart watchers. But the token hasn't yet shown the momentum needed to clear that hurdle.
Momentum flatlines
Despite the price surge, momentum indicators are flatlining. UNI's price is currently touching the upper Bollinger Band, a sign that the move may be overextended in the short term. When a token hits the upper band without strong follow-through, it often signals that buyers are losing steam.
Downside risk if rejection
If UNI fails to break above $4.02 and gets rejected, the downside risk becomes real. A pullback from current levels could see the token retest support near $3.70 or lower. Traders are watching the next few sessions closely to see whether the token can build enough volume to push through resistance or whether the rally fizzles.
No official statements from Uniswap Labs or the UNI development team have been released regarding the price movement. The token's performance remains driven by broader market sentiment and technical trading patterns.
