+7.01% for Uniswap — Buyers dominate despite overbought signals and weak long-term trend

Traders Union
All News
Crypto News
Uniswap jumps 7.01% today to $4.18

Highlights

Uniswap V2 trading volume on Base network sharply declined after fees were introduced, falling from $55–100 million to $24–35 million daily.
Roughly 95% of current Uniswap V2 activity on Base is tied to scam and rug-pull projects, severely limiting protocol fee generation.
UNI price action remains bullish short-term, but overbought signals and weak weekly trend suggest likely consolidation between $4.15 and $4.41 in the next five days.

Trading volumes drop and scam activity rises after fee introduction

Uniswap V2 trading volume on the Base network has dropped sharply following the introduction of fees, with daily volumes decreasing from $55–100 million to $24–35 million. About 90% of this recent volume is not contributing fees to the protocol because it originates from rug pull projects, and more than 95% of Uniswap V2 activity on Base is now tied to scams. In a separate development, MetaMask has integrated the Uniswap API as a swap provider, a move expected to boost Uniswap adoption.

Mixed signals as overbought conditions challenge momentum strength

Technical analysis shows UNI trading above its 20-day and 50-day moving averages, highlighting sustained short- and medium-term strength, although the price remains beneath the 200-day average, reflecting persistent long-term bearish pressure. Immediate support is at the Ichimoku Kijun level of $3.7765. MACD maintains a bullish bias while ADX stays neutral, indicating moderate trend strength. RSI at 53.4 and CCI at 58.9 are both positive, but a Stoch RSI of 83.3 signals overbought territory. BBP reflects intraday buyer dominance, and the Awesome Oscillator is neutral.

Consolidation outlook as overbought risk tempers upside potential

In the next five days, UNI is likely to trade within a typical volatility band of $4.15 to $4.41, with a price increase considered unlikely (probability under 20%). The baseline expectation is for the price to consolidate sideways between immediate support and $4.41 resistance. A break above $4.41 could prompt further gains, while a drop below $4.15 would expose lower support levels. Momentum readings stay positive, but overbought conditions and weak broader trend suggest limited immediate upside.

Anton Kharitonov, expert at Traders Union, notes that although UNI is showing short- and medium-term momentum, the price remains firmly below its 200-day moving average. He sees that declining genuine trading activity and a high rate of scam-related volume on Base further undermine market sentiment, despite the MetaMask integration news. Technical indicators suggest mild strength, but with overbought signals and limited broader support. "My base case is for range-bound consolidation unless $4.41 is breached — gains look capped for now."

Last time, analysts noted that Uniswap remains entrenched below key weekly moving averages, with weak technical indicators—such as negative MACD, bearish RSI, and high volatility—reinforcing persistent seller dominance and a cautious outlook. With support near $3.70 and resistance at the MA-20 level around $5.07, the asset is expected to consolidate within a range amid continued downside risk and limited prospects for a sustained rally.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.