Jessie A Ellis
Nov 18, 2025 18:55
Uniswap’s UNI token trades at $7.71, up 6.6% today, as governance proposal to burn 100 million tokens drives strong performance despite broader market weakness.
Quick Take
• UNI trading at $7.71 (up 6.6% in 24h)
• Fee burn mechanism proposal triggers 35% weekly surge
• Price testing resistance near $7.77 amid strong momentum
• Outperforming Bitcoin as institutional interest grows
Market Events Driving Uniswap Price Movement
The dominant catalyst behind Uniswap’s exceptional performance this week has been a governance proposal to implement a comprehensive fee burn mechanism. The proposal, which surfaced on November 14th, would redirect 100% of protocol fees toward burning UNI tokens, while simultaneously destroying 100 million UNI tokens from the treasury – representing approximately 16% of the total supply.
This deflationary restructure sparked an immediate 35% price surge for UNI, with the token demonstrating remarkable resilience against broader market headwinds. While Bitcoin fell below $95,000 and the S&P 500 initially dropped 1.3% before recovering to close down 0.1%, UNI price continued its ascent, gaining 30.36% over the past week.
The timing coincided with Uniswap’s launch of Continuous Clearing Auctions (CCA) on its v4 protocol, featuring enhanced privacy through Aztec Network’s ZK Passport integration. This positions Uniswap as a comprehensive hub for token issuance, potentially attracting new project launches and additional liquidity.
Adding to the institutional narrative, a significant transfer of 2.818 million UNI tokens (approximately $27.08 million) to Coinbase Prime was observed on November 11th, followed by distribution to major exchanges. While the intent remains unclear, the movement highlights growing institutional engagement with Uniswap governance.
UNI Technical Analysis: Strong Momentum Above Key Averages
Price Action Context
UNI price currently sits well above its short-term moving averages, with the current $7.71 level representing a 3.8% premium to the 7-day SMA of $7.43 and a substantial 16.6% premium to the 20-day SMA of $6.61. The token is trading near the upper end of its 24-hour range of $7.09-$7.77, suggesting continued buying pressure.
The Uniswap technical analysis reveals strong momentum indicators, with MACD at 0.2914 well above its signal line of 0.1604, generating a bullish histogram reading of 0.1310. Volume remains elevated at $94.76 million on Binance spot, indicating sustained institutional and retail interest in the governance developments.
Key Technical Indicators
The RSI reading of 56.91 positions UNI in neutral territory, providing room for additional upside without entering overbought conditions. Bollinger Band positioning shows UNI at 73.86% of the band width, approaching but not yet testing the upper resistance at $8.91.
Stochastic indicators (%K at 52.26, %D at 48.13) suggest the momentum remains intact with potential for continued advances. The daily ATR of $0.87 reflects elevated volatility typical of news-driven price movements.
Critical Price Levels for Uniswap Traders
Immediate Levels (24-48 hours)
• Resistance: $8.91 (Bollinger Band upper limit and psychological level)
• Support: $7.43 (7-day SMA and recent consolidation floor)
Breakout/Breakdown Scenarios
A break above $8.91 could target the significant resistance zone at $10.30, representing a 33% upside from current levels. This level aligns with previous swing highs and would signal a complete recovery from recent lows.
Conversely, a breakdown below $7.43 support could see UNI price retesting the 20-day SMA at $6.61, though the strong fundamental backdrop from the fee burn proposal makes this scenario less probable in the near term.
UNI Correlation Analysis
Bitcoin:** UNI has demonstrated clear divergence from Bitcoin over the past week, with the correlation breaking down as fundamental factors specific to Uniswap take precedence. While Bitcoin struggles below $95,000, UNI maintains its upward trajectory.
Traditional Markets:** The token showed resilience during Monday’s S&P 500 volatility, suggesting that DeFi governance narratives are currently overriding broader risk sentiment. Gold’s 2.4% decline had minimal impact on UNI price action.
Sector Peers:** UNI is significantly outperforming other DeFi tokens, with the fee burn proposal creating a unique value proposition that distinguishes it from standard governance tokens.
Trading Outlook: Uniswap Near-Term Prospects
Bullish Case
Approval of the fee burn mechanism could drive UNI price toward the $10.30 resistance level as deflationary mechanics take effect. The combination of reduced supply and increased protocol utility creates a compelling fundamental backdrop. Technical momentum remains strong with room for RSI expansion.
Bearish Case
Rejection of the governance proposal or broader crypto market deterioration could see UNI price retreat to test the 50-day SMA at $6.78. Institutional selling pressure from the recent Coinbase Prime transfers could also weigh on price if concentrated selling occurs.
Risk Management
Conservative traders should consider stop-losses below $7.00 to protect against breakdown scenarios, while allowing exposure to the upside potential from governance developments. Position sizing should account for the elevated ATR of $0.87, suggesting potential daily swings of 11-13%.
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