Uniswap weekly review: slips below $5 on strong selling — volatility stays high despite protocol upgrades

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Uniswap down 9.20% this week

Highlights

Uniswap activated its protocol fee switch, turning UNI into a value-accruing token through fee sharing and a deflationary burn mechanism.
The protocol generated $1.06 billion in projected fee revenue for 2025 and expanded by deploying Uniswap v3 on OKX's X Layer with zero interface fees.
Institutional sentiment improved amid potential UNI inclusion in Bitwise 11 Altcoin ETFs and recent SEC regulatory relief for DeFi platforms, including Uniswap.

Protocol fee switch and ETF buzz drive institutional sentiment this week

Uniswap activated its protocol fee switch, transforming UNI into a value-accruing token with integrated fee sharing and a deflationary burn. The protocol generated $1.06 billion in fee revenue for 2025 and expanded its reach by deploying Uniswap v3 on OKX's X Layer, an Ethereum Layer-2 network, with zero interface fees. Institutional confidence was further supported by upcoming potential inclusion in the Bitwise 11 Altcoin ETFs and the SEC’s recent regulatory relief for DeFi platforms, including Uniswap.

Bearish technical bias persists amid weak momentum and oversold signals

Technical signals on the weekly chart continue to point to a bearish bias, with UNI trading well under its MA-20, MA-50, and MA-200, and meeting resistance at the weekly Kijun level of $7.1500. The MACD remains in sell territory and ADX levels are low, signaling weak trend strength, while key oscillators like RSI, Stoch RSI, and CCI indicate oversold conditions. UNI closed the week near its low of $4.6200, with volatility remaining high and sellers dominating throughout the period.

Sideways consolidation likely as selling pressure caps recovery risks

Looking ahead to the next 5–7 trading days, UNI is expected to consolidate between $4.80 and $5.60, with persistent selling pressure and a low probability (less than 20%) of a sustained upside move. The baseline scenario anticipates sideways movement within this range amid weak momentum. A break above $5.60 could spark a short-term recovery, while a decisive move below $4.80 may open the door for further declines.

Previously it was noted that technical structure analysis confirmed a deterioration in the near-term outlook for Uniswap. The article also discussed how sentiment around the asset was mixed to cautious due to broader market weakness and continued outflows.

Source of Data: UNI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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