Uniswap News Today: UNI Surges on Fee Switch Hopes, But Whale Sales Cast Doubt

Uniswap's native token, UNI, surged 18.14% in a week as renewed optimism around the protocol's governance proposals and whale activity drove momentum. The price rally, which saw UNI climb past $7.33 on November 17, was fueled by the ongoing debate around the Fee Switch Proposal-a governance initiative that could redirect a portion of the protocol's $400 million+ annual revenue to UNI buybacks and burns. Traders and institutional investors are closely watching the proposal, which has reignited discussions about aligning incentives for token holders and protocol sustainability.

The price action coincided with a broader market downturn, where Bitcoin and Ethereum faced significant sell-offs. Despite the bearish trend, UNI outperformed, with 24-hour trading volume jumping 47.59% to $682 million. Technical indicators also pointed to a potential continuation of the rally: UNI reclaimed its 30-day simple moving average at $6.42 and approached the 200-day SMA of $7.94, signaling strong short-term bullish momentum. . Analysts noted that if bulls can close a daily candle above $8, the token could test $9.46 within 7–10 days, driven by sustained volume above $650 million.

However, the optimism was tempered by on-chain activity from high-profile figures. Arthur Hayes, co-founder of BitMEX, sold nearly 1,500 Ethereum over the weekend, reducing his UNI holdings as part of a broader liquidation of DeFi assets. According to on-chain data, Hayes' ETH holdings dropped from 6,500 to 5,000 tokens, valued at $16.11 million, while his UNI position was also cut. Lookonchain analysts emphasized that this activity reflected active selling rather than portfolio rebalancing, adding a layer of caution for traders interpreting the market's direction.

Market structure analysis suggested UNI's support levels remained robust, with historical floors below $6.50 providing a buffer against deeper corrections. The Relative Strength Index (RSI-14) stood at 53.16, indicating neutral to mildly bullish sentiment, while the MACD histogram turned positive, a sign of institutional accumulation. Despite these fundamentals, bears warned that a close below $7.41 could trigger a retest of the $6.42 support, though such a scenario would require a significant drop in volume and momentum.

The Fee Switch Proposal remains a pivotal catalyst for UNI's long-term trajectory. If approved, the proposal could institutionalize buybacks, potentially reducing the token supply and increasing demand from protocol-generated revenue. This aligns with broader trends in DeFi, where governance-driven value redistribution has become a key metric for investor confidence. Meanwhile, whale activity such as the purchase of 1.2 million UNI tokens by large holders this week further underscores the asset's appeal amid market volatility.

As the crypto winter deepens, UNI's performance highlights the interplay between protocol-level innovations and macroeconomic forces. While broader market sentiment remains bearish, with the Fear & Greed Index at extreme fear levels, tokens like UNI that offer clear utility and governance-driven value propositions are attracting defensive capital. The coming weeks will test whether the Fee Switch Proposal can solidify UNI's role as a cornerstone of Ethereum's DeFi ecosystem or if selling pressure from figures like Hayes will temper its ascent.