Uniswap falls 15.16% as sellers maintain control into short-term low

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Uniswap drops 15.16% to $3.073 today

Highlights

Uniswap's implementation of the 'fee switch' now automates UNI token buybacks and burns, signaling a structural shift to deflationary supply dynamics.
The protocol remains the top decentralized exchange by activity, with $1.47 billion in 24-hour trading volume and new tokenized share listings enhancing relevance.
UNI/USD sustains bearish momentum, trading below major moving averages, with high volatility and a probable short-term range of $2.79 to $3.36.

Deflationary token model and asset expansion amid persistent outflows

Uniswap's protocol "fee switch" mechanism is now live, following its approval by 99.9% of the governance community in December 2025. This upgrade initiates systematic buybacks and burns of UNI tokens, shifting the token into a deflationary model that directly reduces circulating supply. According to DefiLlama, the protocol recorded $1.47 billion in 24-hour decentralized exchange volume, establishing Uniswap as the top-ranked DEX by activity. The platform also recently added tokenized shares, such as those of SpaceX and Apple, broadening its range of tradable assets and supporting increased market relevance — though price action has remained under broader selling pressure.

Downside momentum confirmed as technical signals stay bearish

UNI/USD trades below the MA-20 at $3.2555, MA-50 at $3.2436, and long-term MA-200 at $4.0450 on the hourly chart. The Ichimoku Kijun at $3.4000 represents immediate resistance. Momentum readings remain negative: MACD and ADX continue to signal a sell, while the RSI sits at 38.87. Both Stoch RSI and CCI flag oversold conditions, indicating short-term exhaustion, and BBP validates persistent seller dominance. The Awesome Oscillator aligns with the prevailing downtrend, and price is near today's lows, reinforcing heightened intraday volatility. All indicators confirm strong downside momentum, without notable divergences.

Low upside odds as consolidation expected within current volatility range

In the short term, UNI/USD is expected to fluctuate between $2.7906 and $3.3554, representing the current volatility band. The probability of an upward move is low at 29%, while further downside is statistically favored. The baseline scenario calls for sideways consolidation within this range; a break above $3.4000 is required to trigger a bullish reversal, while a sustained move below $2.7906 would open the door to deeper losses.

Anton Kharitonov, expert at Traders Union, notes that despite the protocol upgrade with a live 'fee switch' and strong governance support, market sentiment around UNI remains weak. He believes the technical setup is clearly bearish, as all key indicators confirm strong downside momentum and seller control. The current price action suggests little chance of immediate recovery, and the asset could face more losses if support fails. "Until UNI reclaims the $3.4000 level, risk remains skewed to the downside and I stay defensive."

Previously, analysts noted that Uniswap was experiencing renewed bullish momentum driven by protocol upgrades and rising trading activity, but warned of elevated downside risk amid overheated conditions. The current sharp decline and confirmation of negative momentum strengthen this cautionary view, making a sustained move below $2.7906 a critical inflection point for potential further losses.

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.