Uniswap under the microscope; Does the rise continue or does the bearish market pull UNI down?

study time: 2 minutes

The UniSwap (UNI) price has been in an uptrend for the past 12 days. Important support around $5.5 has been identified as a key demand area and buyers have so far been able to contain the selling pressure in this area.

On December 26, the UNification proposal was approved and the activation of the fee switch scheme helped to fundamentally strengthen the protocol.

The burning of 100 million UNI tokens (worth approximately $591 million) also boosted market confidence. This move could affect UNI’s price trend in the coming weeks and months.

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However, overall crypto market conditions are still bearish and many analysts believe Bitcoin is entering a long-term bear market; An issue that increases selling pressure in the altcoins market.

Despite this, defending the $5.5 range and maintaining the bullish structure on the daily chart makes UniSwap likely to move towards the $6.65 and $8.25 resistances. On the other hand, a price drop below $5.3 will invalidate this scenario.

Overall, UniSwap could outperform the market, but overall bearish conditions still pose limitations.