UNI Price Stalls at $10 as Bearish Pattern Caps Rally Despite “UNIfication” Hype

The UNI price faces renewed selling pressure at the resistance trendline of the descending triangle pattern. Uniswap Labs and Foundation have revealed a new joint governance proposal called “UNIfication”, which aims to activate the protocol fee, introduce a UNI burning mechanism, and reduce the overall token supply. This proposal marks a significant pivot in the network's economic structure.

According to Santiment data, the price rally coincides with a multi-year high in whale transactions and wallet creation. UNI, the native cryptocurrency of the decentralized exchange Uniswap, has drawn investment attention after experiencing a sharp 70% surge in value last week. The surge links strongly to the recently introduced governance proposal, which includes steps such as activating protocol fees, a usage-based burn mechanism, and a reduction to the total token supply.

Following the proposal’s announcement, on-chain activity spiked, with a rise in whale accumulation and new wallet creations, signalling strong FOMO (Fear of Missing Out) amongst investors. UNI's price saw a sharp 42% boost yesterday, accompanied by Uniswap’s network overhaul. The UNIfication proposal includes plans to burn 100M tokens and funnel protocol revenue towards continuous token burns. Additionally, it outlines tools aimed at enhancing incentives for liquidity providers across Uniswap’s trading infrastructure.

Large-value whale transactions have hit their highest levels in four years, while new wallet creations are at a three-year high. These metrics highlight an increase in both institutional and retail investor activity. Analysts interpret this combination as expanding network participation, rather than isolated speculation. This shift in market sentiment suggests that Uniswap is becoming a more robust platform for decentralized trading.

In the derivatives markets, open interest in Uniswap futures has surged dramatically—rising from $235 million to $770 million, a whopping 227% increase within four days. Such a parabolic rise in open interest reflects fresh leveraged exposure by traders who are increasingly optimistic about Uniswap’s new governance model. Historically, similar increases in open interest have been followed by substantial price recoveries.

Earlier today, UNI attempted to continue its recovery and reached $10.03, a value last seen in mid-September. However, at this psychological level, the token experienced renewed selling pressure, leading to a long red candle and an 11% loss. Technical analysis reveals a descending triangle pattern, with resistance at the trendline and strong horizontal support at $4.84. Historically, reversals from this resistance result in significant price corrections, potentially as much as 42% downward.

Despite this downturn, optimism surrounding UNIfication might limit the downswing to $8 or $7.2, where the 50-and-200-day exponential moving averages offer support. If buyers manage to defend these levels, Uniswap’s price could stabilize and rebound to challenge the resistance trendline again. However, a break below the $7.2 floor could intensify selling pressure and drive the token down to $5 support.