After the fee switch implementation, can UNI break through against the trend? Analysis of the key price zone for Uniswap

Over the past 12 days, the price of Uniswap (UNI) has shown a moderate upward trend overall. In the latest technical analysis, the $5.50 level is regarded as an important supply and demand imbalance zone. Bulls successfully defended this area, laying the foundation for a short-term rebound. From the market perspective, selling pressure temporarily increased, but the bulls were not broken, and signs of a phased market sentiment recovery appeared.

On December 26, the Uniswap community officially approved the fee conversion proposal, marking a key change in the protocol’s fundamentals. According to the proposal, approximately 100 million UNI tokens will be burned in a one-time event, valued at about $591 million at the current price. Additionally, a portion of future protocol fees will also be used for continuous UNI burning. This deflationary mechanism significantly strengthens UNI’s value narrative and supports medium- to long-term price expectations.

From a trend structure perspective, an upward pattern at the daily level for UNI is gradually forming, with internal structure leaning bullish, which is a positive signal. However, the current market environment is not friendly. Many traders view Bitcoin (BTC) as potentially entering a mid-term bear market, with overall risk appetite being low, making it difficult for most altcoins to sustain a continuous upward trend. Even so, under the backdrop of improved fundamentals, Uniswap still has the potential to outperform the market phase-wise, but caution is advised.

Regarding technical indicators, the $6.25 to $6.55 range constitutes a strong short-term resistance zone. UNI has not yet achieved an effective volume breakout and closed above this level. The OBV indicator has not reached new highs simultaneously, indicating that spot buying momentum remains limited. However, the MFI and MACD are gradually turning bullish, showing that short-term momentum is improving.

From a risk perspective, if Bitcoin confirms a longer-term downtrend, DeFi tokens like UNI may face additional selling pressure. Even if short-term strength appears, it should be viewed more as a rebound or relative strength rally rather than a trend-based bull market.

The liquidation heatmap shows clear “magnet zones” above $6.65 and $8.25. If market sentiment improves, these levels could become targets for price attraction. However, it is important to note that once UNI falls below the imbalance zone around $5.30, the current bullish structure will be broken, and the short-term bullish logic will also become invalid.

Overall, with fee conversion and deflation expectations supporting, Uniswap’s price has structural advantages. However, whether it can truly stabilize and strengthen depends on the overall market environment and changes in risk appetite.