Uniswap regains momentum: increasing volumes, renewed demand on the DEX, and bullish technical signals. As UNI appears poised to revisit long-forgotten levels, the market wonders: when will the bears return? Amidst bullish momentum and potential reversal threats, discover how high UNI could soar before the next bearish wave.
Uniswap ‘s UNI token is currently navigating a delicate technical phase. After recording substantial gains in recent weeks, Ethereum’s flagship DeFi protocol is facing strategic price levels that could determine its next trajectory. Traders are particularly scrutinizing the $6.55 zone, which represents a major pivot point for the continuation of the bullish movement.
On-chain analysis reveals gradual accumulation by institutional investors, while trading volumes remain sustained across major platforms. This combination suggests genuine interest in UNI, but the question of timing remains central. Current support levels sit around $5.80, then $5.20 in case of a more pronounced correction.
The market structure also shows increased volatility around announcements related to the protocol’s governance. Recent proposals from the Uniswap community have created significant price movements, demonstrating that internal project developments directly influence investor sentiment.
The $6.55 price level isn’t randomly chosen by technical analysts. It represents a confluence of several crucial indicators: resistance from previous highs, a strategic Fibonacci retracement, and a zone where institutional sell orders appear concentrated. A clean break of this threshold with substantial volumes would pave the way for an extension toward $7.50, or even $8.
Technical indicators show an RSI (Relative Strength Index) approaching overbought levels without reaching them yet. The MACD displays a bullish divergence on daily timeframes, suggesting momentum remains favorable to buyers in the short term. However, Bollinger Bands are beginning to tighten, signaling a possible consolidation phase before the next major directional move.
Market makers are also observing the evolution of the ratio between buyers and sellers on order books across major exchanges. For now, buying pressure slightly dominates, but a rapid shift could occur if bears decide to aggressively defend the $6.55 zone. The macroeconomic context and Ethereum’s price evolution also play a determining role in this equation.
Beyond pure technical analysis, several fundamental catalysts explain the growing interest in Uniswap. The platform continues to dominate the decentralized exchange sector with an impressive market share, processing billions of dollars in daily volumes. The adoption of protocol version 4, with its new features like customizable hooks, reinforces the project’s technical value proposition.
The protocol’s generated revenues are experiencing steady growth, fueled by increasing transaction fees and the number of active users. This organic growth naturally attracts the attention of investors seeking DeFi projects with solid fundamentals. Discussions around a potential revenue redistribution mechanism to UNI token holders also add a layer of economic incentive.
Uniswap’s position vis-à-vis U.S. regulators remains a point of attention. Any positive clarification of the regulatory framework could act as a major catalyst for the UNI token. Conversely, negative regulatory action would constitute an immediate bearish risk to consider in any investment strategy.
Related articles:
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
