Key Takeaways
Why has Uniswap’s price surged over 14% in the past 24 hours?
Because UNI rebounded from its descending channel, supported by rising volume and renewed market confidence.
How are traders positioning as UNI nears key resistance levels?
Rising Open Interest, short liquidations, and higher exchange reserves indicate strong momentum with mild caution.
Uniswap [UNI] rose 14.53% in the past 24 hours to $6.75, with its market cap soaring to $4.25 billion. Trading volume also spiked by 88.4% to $476.86 million, marking one of UNI’s strongest trading days in recent months.
The surge highlights a resurgence of bullish sentiment across the DeFi sector as investors reallocate capital toward mid-cap tokens showing renewed strength.
Traders appear optimistic about a potential breakout from the downtrend that began in August.
UNI rebounds sharply from descending channel support
Uniswap’s price rebounded from the lower boundary of its descending channel, where buyers had previously struggled to gain traction. The token has reclaimed levels above $6.5 and faced a crucial resistance near $7.1 at press time.
This aligned with the upper trendline that has capped several rallies since August.
A close above this area could confirm a trend reversal, opening paths toward $8.5 and possibly $10, if momentum sustains.
Even so, traders should remain alert — a rejection here could cause a short-term pullback before another bullish attempt.
Source: TradingView
Open Interest surges as leveraged traders return
Open Interest has jumped 26.92% to $353.45 million at press time, confirming a surge in market participation as leveraged traders re-enter with heightened confidence.
The sharp increase suggested that traders had been betting on continued upside, reinforcing UNI’s price breakout attempt.
When Open Interest expands with rising prices, it typically signals new money flowing into the market, validating the strength of the trend.
If this momentum persists, Uniswap could see a stronger continuation toward the $8.5 resistance, with higher volatility amplifying short-term opportunities for traders.
Source: CoinGlass
Short liquidations spike as bearish momentum weakens
Liquidation data showed $23.58K in shorts versus only $563 in longs, exposing clear bearish exhaustion. This imbalance indicates that short sellers are being squeezed, amplifying UNI’s price move.
As these positions close, forced buying can accelerate rallies — a pattern seen in prior UNI recoveries.
The liquidations occurred near a key resistance, suggesting bears are losing confidence and momentum may shift firmly to buyers.
If UNI stabilizes above $7, short covering could drive faster tests of higher resistance zones.
Source: CoinGlass
Exchange reserves rise 14.65%, hinting at mild selling pressure
UNI’s total Exchange Reserves increased by 14.65% to $555.66 million at press time, signaling that some holders were transferring their tokens back to trading platforms—often a precursor to potential selling activity.
However, despite the increase in reserves, buying demand appears resilient, as strong trading volumes continue to absorb available supply.
This suggests that any profit-taking remains controlled and not yet strong enough to reverse momentum.
If demand persists, UNI could maintain its bullish trajectory; however, extended inflows to exchanges might slow the pace of recovery in the short term.
Source: CryptoQuant
To conclude, Uniswap’s 14.5% price rally, rising Open Interest, and aggressive short liquidations collectively highlight renewed bullish conviction in the market.
Rising trading volume strengthens this signal, though increasing exchange reserves warrant mild caution.
A decisive daily close above $7.1 could validate a breakout and set UNI on course for $8.5, confirming a structural trend reversal for the DeFi token.
