Uniswap's Price Drops 74% But Unichain Boosts Optimism

Uniswap’s price has experienced a significant decline over the past few months, dropping from a high of $19.46 in December to around $5 today. This decline is part of a broader trend affecting many altcoins, which have lost more than 70% of their value. Despite this price slump, there is growing optimism surrounding Uniswap, particularly due to the launch of Unichain, its new layer-2 network. Unichain is designed to make trading cheaper and faster, and it has already attracted a significant number of developers, including Stargate, Venus, Compound, and DyorSwap. The total value locked in Unichain has reached over $277 million, with $146 million held in stablecoins. In terms of trading volume, Unichain handled $112 million in just 24 hours, adding up to over $300 million in the last month. This rapid growth is a strong signal of increasing adoption and usage.

One of the most promising aspects of Unichain is its impact on UNI holders. Every transaction on Unichain generates fees, which are then converted into UNI and burned, permanently reducing the supply. This mechanism not only benefits UNI holders but also strengthens the overall fundamentals of the token. Additionally, Uniswap’s revenue this year has already surpassed Ethereum’s, hitting $299 million compared to Ethereum’s $234 million. As UNI revenue continues to climb and fundamentals strengthen, there is more reason to believe that the UNI price could be gearing up for a recovery. The groundwork is being laid for a potential price recovery, supported by strong fundamentals and rising usage.

UNI has been trading within a steadily ascending channel, consistently finding support along its lower trendline near $5.18–$5.20 and facing resistance just below $5.30. The UNI price initially dipped to a low around $5.14 on the 18th before reversing sharply, triggering a golden cross on the MACD and propelling UNI toward $5.25. Subsequent higher lows near $5.21 and $5.23 reaffirmed bullish sentiment as the price moved upward again. Throughout the session, UNI tapped the resistance zone around $5.29–$5.30 multiple times but failed to break through decisively. Each overbought RSI reading above 70 led to a short-lived correction, with the indicator then resetting to neutral levels near 42–46, showing consistent reaccumulation by buyers. Price movements have oscillated between $5.15 support and $5.30 resistance, with recent swings forming a bullish stair-step structure. After briefly peaking near $5.32, UNI retraced to around $5.24–$5.25, now hovering just above the channel’s midline. The MACD has shown alternating golden and death crosses, reflecting mixed short-term momentum, though the underlying trend remains upward as long as the $5.20 level is respected. A break below $5.18 could risk further downside toward $5.15, while a strong bounce from current levels could target the $5.30–$5.32 resistance again, potentially triggering the much-anticipated UNI breakout.

Uniswap is showing signs of quiet strength, even after months of heavy selling. The $5.20 level has become a key support zone, helping buyers step in just when it matters. With Unichain gaining real traction and Uniswap revenue climbing higher than Ethereum’s, the fundamentals are starting to back up what we’re seeing on the chart. If the UNI price can stay above $5.18, there’s a solid chance it could make another run at the $5.30–$5.32 zone. But if it slips below $5.15, that might cool things off a bit. For now, it’s a waiting game, but one that’s leaning in the bulls’ favor. Traders should keep a close eye as this momentum continues to build toward a potential UNI breakout.