Key Takeaways
- Uniswap UNI surges 14.5%, nearing $7 resistance amid rising open interest and strong short liquidations.
- Rising Open Interest and short squeezes signal bullish momentum for UNI with potential breakout to $8.5-$10.
- Fee sharing talks and volume spike boost UNI’s price recovery, though increased exchange reserves suggest caution.
Uniswap’s native token, UNI, surged over 14.5% in the past 24 hours, nearing a key resistance level around $7. This price leap comes amid a spike in trading volume and increased market participation, signaling a potential breakout and a structural trend reversal for the token.
The rally is backed by two vital metrics—rising Open Interest and accelerating short liquidations—indicating strong bullish conviction among traders.
UNI’s Price Rebound and Key Resistance Test
UNI rebounded sharply from the lower boundary of its descending channel, reclaiming levels above $6.5 after a period of price weakness that began in August 2025. Currently trading near $6.75, UNI faces resistance at approximately $7.1, a critical level that has resisted rallies several times.
Closing above this resistance could confirm a reversal, opening the path for UNI to potentially rally toward $8.5 and $10. However, traders are cautious as a rejection might lead to a short-term pullback before another upward attempt.
This price movement coincides with the ongoing discussions about implementing the Uniswap fee switch—a mechanism that would share protocol trading fee revenue with UNI token holders. These talks boost institutional interest and add fundamental strength to the technical breakout, further fueling optimism for sustained gains.
Open Interest and Short Liquidations Confirm Strength
Open Interest has surged nearly 27% to $353.45 million, marking increased participation by leveraged traders betting on UNI’s upside. When open interest expands alongside rising prices, it confirms new capital inflow that validates the bullish trend. Meanwhile, short liquidations have spiked with liquidations of $23.58K in shorts versus only $563 in longs. This suggests bearish traders are being forced out, fueling a squeeze that accelerates UNI’s rally.
These indicators combined highlight a strong market conviction in UNI’s price recovery, backed by volume that reached $476.86 million—one of the highest in recent months. Though profit-taking appears controlled, exchange reserves for UNI have risen by 14.65%, indicating some holders are transferring tokens back to exchanges, a mild signal for potential selling pressure.
Technical Factors and Price Targets
Technically, UNI is trading well above its 20-day and 50-day Simple Moving Averages (SMAs), signaling sustained momentum from recent breakouts. The Relative Strength Index (RSI) is in neutral territory at 59.93, indicating room for more upside before becoming overbought.
Additionally, the MACD histogram turns bullish, suggesting strengthening momentum. UNI is currently testing the upper Bollinger Band resistance near $7.02, an immediate test that will determine if the breakout sustains.
Should UNI break and hold above $7.2, traders expect momentum to push prices toward $9.08, a zone aligned with analyst price targets following its breakout from a six-month correction. Conversely, failure to maintain support at $6.54 could revert prices toward lower levels around $4.74, although this seems less likely given the current bullish context.
