- UNI is up 70% weekly after a proposal to burn 100M tokens
- Daily whale transactions hit a 4-year high
- UNI broke out of a long-term descending channel
Uniswap (UNI) has surged by more than 70% in the past week following a major governance proposal to burn 100 million UNI tokens as part of a new fee structure designed to redirect protocol revenues toward token burns and liquidity provider rewards.
Notably, CryptoQuant CEO Ki Young Ju stated in a recent post on X (formerly Twitter) that the “UNIfication” proposal could turn Uniswap “parabolic,” indicating that the burning of tokens could significantly boost UNI’s value and demand. He added that “a supply shock seems inevitable.”
Related: Uniswap Crosses $1T Annual Volume as UNI Drops 26% Despite Bullish Pattern
Historical Milestones
According to on-chain analytics platform Santiment, Uniswap also hit a major milestone, not seen in years. Daily whale transactions, i.e., transfers exceeding $100,000, spiked to their highest level in four years.
The metric is often associated with market tops as long-term holders increase participation. Also, the number of new UNI wallets has surged to its highest level since November 2022. Retail FOMO is high at the moment,” said Santiment.
Santiment’s chart data also shows that in just two hours, over 422 whale transactions took place, levels comparable to February 2021, when UNI hit a local top during its previous bull cycle. Simultaneously, 1,598 new wallets were created as well.
UNI Price Analysis: Targets $10–$14 Range
UNI has successfully broken out of a descending channel that had constrained price action since mid-August. The RSI shot up past 50 and briefly entered the overbought region. The CMF has also turned sharply positive, confirming inflows.
According to CoinMarketCap data, UNI currently trades around $8.70, above key Fibonacci retracement zones between $6.70 and $5.90. Maintaining support here would confirm the breakout’s validity.
Resistance levels are at the 1.618 Fibonacci extension near $9.26, followed by $10.45 and $12.64. A sustained breakout above $10 would confirm a trend reversal and open the path toward the $13–$14 region. However, failure to hold above $6.70 could invalidate this setup, potentially leading to a pullback toward $5.23 or even $4.72.
Related: Uniswap Price Prediction: UNI Eyes Continuation After Breakout as Governance Shift Nears
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