Uniswap (UNI) Rebounds from Key Support as SEC Case Dropped

Uniswap (UNI) is showing signs of a potential reversal after reaching key support near $7.86, coinciding with the SEC’s decision to drop its investigation into the protocol.

This development has boosted market sentiment, increasing the likelihood of a breakout from UNI’s descending wedge structure. With RSI indicating oversold conditions, traders are now watching for confirmation of a trend reversal toward key Fibonacci resistance levels.

SEC Drops Uniswap Case 

The U.S. Securities and Exchange Commission (SEC) has decided to drop its investigation into Uniswap, signaling a potential shift in regulatory attitudes toward decentralized finance (DeFi). The move comes amid broader discussions on how crypto regulations should evolve, particularly as the SEC faces legal challenges over its approach to digital assets. Uniswap, a leading decentralized exchange, had been under scrutiny regarding its protocol’s compliance with securities laws. 

The decision to close the case without charges marks a significant win for the DeFi sector, reflecting growing legal pushback against the SEC’s expansive interpretation of securities regulations. This development aligns with ongoing regulatory debates in the U.S., where lawmakers and industry players are pushing for clearer guidelines on how crypto projects should be classified and governed. The outcome of this case may set a precedent for future DeFi-related investigations and regulatory frameworks.

UNI Price Analysis

Uniswap (UNI) has been in a prolonged downtrend, forming a descending wedge structure since reaching its peak near $19.35. This pattern has played out within a five-wave corrective sequence labeled (a)-(b)-(c)-(d)-(e), as seen in the 4-hour chart. The final wave (e) has reached the 0.786 Fibonacci retracement at approximately $7.86, which aligns with a strong support zone.

Historically, descending wedges often signal trend reversals, particularly when accompanied by oversold conditions. The Relative Strength Index (RSI) currently sits near the median point as it recovered from the oversold conditions. The completion of the corrective structure suggests that UNI may be preparing for an impulsive recovery, provided it confirms a breakout above the wedge’s upper boundary.

A breakout above $8.50 could trigger further upside, initially targeting the 0.618 Fibonacci level at $10.32. Additional resistance lies at the 0.5 retracement level ($12.04), aligning with previous price congestion. However, failure to hold above the $7.86 support zone may lead to a deeper retracement, with a potential retest of the psychological $7.00 level or even the 1.0 Fibonacci extension near $4.74 in a worst-case scenario.

UNI Price Prediction

The 1-hour chart provides a closer look at UNI’s potential reversal. A bullish divergence is forming as the RSI trends upward while price action remains near lows, suggesting weakening bearish momentum. If the structure follows a classic breakout pattern, the first confirmation will come with a decisive move above the wedge resistance at $8.50.

Following an upward breakout, UNI’s first target is $10.32 (0.618 Fibonacci level), where it may face short-term resistance. A sustained move past this level could push the price toward $12.04 (0.5 Fibonacci level) and potentially $13.77 (0.382 retracement), representing key reaction zones for trend continuation.

On the downside, UNI must hold above $7.86 to maintain the reversal scenario. If the price breaks below this level, the downtrend could extend toward $7.00. A failure at this level would confirm further bearish continuation toward $4.74, invalidating the bullish setup.

Key Levels to Watch

• Immediate Resistance: $8.50 (wedge breakout level)
• Key Resistance: $10.32 (0.618 Fibonacci retracement)
• Major Resistance: $12.04 (0.5 Fibonacci retracement)
• Immediate Support: $7.86 (0.786 Fibonacci retracement)
• Critical Support: $7.00 (psychological level)
• Invalidation Zone: Below $4.74 (1.0 Fibonacci extension)