|
Getting your Trinity Audio player ready...
|
- UNI trades just above the crucial $5.92 support after a steep correction.
- Mixed indicators show buyer interest rising, but capital outflows persist.
- A move above $6.55 may spark recovery; a drop below support signals deeper downside.
Uniswap’s UNI token is once again under pressure after a sharp pullback erased much of its early-month rally. Despite a brief surge to $10.3—fueled by optimism around the UNIfication proposal and planned UNI buybacks—the asset now trades just above a critical support level. Traders are watching closely as technical indicators flash conflicting signals, raising the question: Is UNI preparing for a rebound or bracing for another leg down?
Bullish Bias Holds on Higher Timeframes
On the 1-day chart, UNI still carries a lingering bullish bias following its breakout above $8.6 earlier this month. That move confirmed a higher-high structure and hinted at renewed momentum for the token.
However, analysts previously noted that a retracement toward $6.86 and $5.92 was likely—and that correction has now played out in full. At press time, UNI sits just above the lower target, a zone that has historically attracted buyers.
Adding to the broader conversation, the Uniswap Foundation recently called for clearer tax and regulatory frameworks for the DeFi sector, urging policymakers to offer guidance that supports innovation without stifling growth.
For DeFi to thrive in the US, builders need clear rules today
— Uniswap Foundation (@UniswapFND) November 20, 2025
We stand with @SolanaInstitute and the broader community in calling for tax clarity, regulatory guidance, and strong developer protections https://t.co/Fwlk9Wmw5M
Lower Timeframes Show Seller Control
While the daily trend appears constructive, the 4-hour chart tells a different story. The Money Flow Index (MFI) has climbed above 50, signaling fresh buying pressure, yet the Chaikin Money Flow (CMF) remains deeply negative—evidence of capital outflows persisting since late November.
UNI’s H4 structure has been bearish for over a week, following a failed retest of the $8.6 supply zone, which strengthened sellers’ grip.
Recovery Trigger or Breakdown Signal?
For bullish traders, the first sign of recovery would be a move above $6.55, potentially opening the door for short-term long positions.
Also Read: Uniswap (UNI) Rally Cools as Selling Pressure Builds — Key Support Levels to Watch
However, a drop below $5.92—the level currently keeping UNI afloat—would likely confirm further downside. Flat Open Interest and occasional dips into negative funding rates reinforce the bearish sentiment, even as spot demand (CVD) shows modest improvement.
UNI stands at a pivotal crossroads. While higher-timeframe structure supports cautious optimism, lower-timeframe weakness and deteriorating market sentiment suggest sellers still have the upper hand. Whether UNI rebounds from support or slides into deeper losses will define its December trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
