UNI recently surged ~50% in a week, driven by the “UNIfication” governance proposal which would activate protocol fees and burn 100 M UNI tokens from the treasury.
On-chain and derivatives indicators: rising open interest and improvement in long/short ratios suggest stronger trader conviction.
Despite the rally, technical structure shows caution: price is still near resistance and market sentiment has a mix of optimism and risk-off tone.
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⚠️ Key support & resistance, outlook
Support zones: Around ~$7.40–$7.80 are key short-term cushions. If UNI drops below these, it risks sliding toward ~$6.50–$6.80.
Resistance zones: A major hurdle sits around ~$9.50-$10.00. A decisive breakout above this could open further upside.
Outlook:
Bullish scenario: If UNI holds the ~$7.80 support and the governance proposal passes the vote, it may push through resistance toward ~$12 or more.
Bearish scenario: If the rally exhausts and resistance holds, and broader market turns negative, UNI could retreat toward the ~$6.50 region.
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🎯 Bottom line
UNI is in a potential breakout phase thanks to fundamental shifts in token-economics (fee switch + burn) and renewed interest. However, it remains exposed to risk: the rally may be vulnerable to profit-taking and broader market weakness. For those watching, the ~$7.80 support and ~$9.50 resistance are the critical levels to keep an eye on.
#MarketPullback #AITokensRally #IPOWave #CPIWatch #CryptoScamSurge
