UNI at $6.3, are you brave enough to get on board?
First, look at the surface: a spike followed by a pullback, retail investors panic selling.
In the past two weeks, UNI started around 4, surged rapidly to 7.4-7.5, then hit resistance and pulled back. On Thursday, a big bearish candle slammed it down to 5.85-6.06, and the community exploded: "It's over, run!"
But then? On Friday, it opened low and climbed high, reclaiming 6.3.
The candlestick tells you: bottom tested and rebounded, standing above the 20/50-day moving averages, mid-term structure turning bullish.
First thing: The fee switch is burning money, yet you’re panic selling.
The UNIfication fee switch is continuously running, protocol fees are directly used to buy back and burn UNI, with an annualized burn scale reaching $250 million. Founder Hayden Adams personally stated: "Burning is accelerating."
Every penny the protocol earns → buys UNI → burns it → supply decreases
Total supply shrinks from 1 billion to 890 million, the deflation narrative holds.
UNI is now in a positive cycle of "fees - buyback - burn," transforming from a pure governance token into an asset supported by cash flow.
Second thing: v4 launch, stablecoin + RWA trading volume is rising.
Uniswap v4 launched StablePair Hook, dynamic fees for stablecoin pools, improving LP yields and stablecoin trading efficiency. Uniswap trading is active on new chains like Robinhood Chain.
v4 Hooks ecosystem expands, stablecoin and RWA trading volumes increase.
Institutions begin experimenting with tokenized securities/stocks.
Uniswap is evolving from a "Memecoin casino" into "institutional-grade trading infrastructure."
Third thing: a technical signal that must be taken seriously.
From 7.5 it pulled back to 5.85, down 22%, then rebounded strongly to reclaim 6.3. Daily chart stands above 20/50-day MAs, weekly chart breaks previous downtrend and confirms with a retest, supported near the 100-week EMA.
Resistance above: 6.50-6.55 → 7.10-7.50 (previous high concentration) → 8.00+
Support below: 6.10-5.85 (today’s rebound start) → 5.50-5.30 (deeper pullback) → 4.90-4.60 (weekly breakout level)
Bull vs. bear, judge for yourself.
On one side:
Annualized burn of $250 million, deflation narrative holds
v4 launch + rising stablecoin/RWA trading volume
Daily chart above moving averages, weekly chart breaks downtrend
DEX leader position solid, institutional attention returning
On the other side:
Macro pressure, FOMC approaching, 60-70% chance of rate hike
Memecoin downturn causes some on-chain revenue decline
Concentrated holdings, regulatory uncertainty on DeFi frontends
Failed three times at 7.2-7.5, huge psychological pressure
Trading strategy
Short-term traders:
If 6.50-6.6 shows stagnation/long upper shadow, lightly short with stop loss at 6.80, target 6.10-5.90. If volume breaks above 6.55 and holds, buy on pullback to 6.3-6.4, target 7.10-7.50.
Swing traders:
If pullback to 6.10-5.85 shows bottoming candlestick + volume, lightly long with stop loss below 5.70, target 6.50-6.80 to reduce position. Breaking 5.85 opens 5.5 or lower.
Long-term believers:
Scale in batches between 5.8-6.3, target 7.5-8.0, reduce and observe if breaks 5.5. UNI has retraced over 85% from ATH 45, current position is closer to cycle recovery than a bubble. Betting on fee switch + accelerated burn + v4 ecosystem.
UNI now is like ETH in 2020—
99% thought "it's over," but when DeFi Summer came, it surged straight to 45.
On the day 6.5 breaks, you’ll realize:
It’s not that UNI is weak, it’s that you kept panic selling at the lowest points.
At 6.3, are you brave enough to get on board?
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