UNI’s $6 Breakthrough: Burn Votes & Bubbles!

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Uniswap’s price [UNI] soared 17.75% on Saturday, only to dip 2.32% on Sunday-what a rollercoaster! 🎢 A true testament to the volatility of crypto, darling. 🤡

The UNIfication proposal-truly a blockbuster of a vote! 🎬 Voting onchain has reached a quorum, and the drama continues until 25 December. Will it be a triumphant finale or a tragic farce? 🎭

When voting commenced at 3:50 UTC on 20 December, Uniswap was trading at $5.30. Since then, it has rallied by 16.27% to reach $6.16 at press time. What a climb! 🧗‍♂️

The UNIfication proposal’s approval would implement protocol fees across Uniswap v2 and some v3 liquidity pools, and these fees would be used to burn UNI. A little financial alchemy, if you will. 🔥

Additionally, a retroactive burn of 100M UNI is also part of the proposal. This burn is intended to mimic the amount of tokens that would have been burnt had protocol fees been implemented since the token launch. A time machine for tokens! ⏳

UNI’s robust rally is a testament to the market’s confidence-though one wonders if it’s confidence or sheer desperation. 💸

Assessing Uniswap’s rally… and potential swing trading opportunities

A bullish structure was established once again with a daily session close above $5.97. The imbalance from $5.33-$6.05 (white box) could be retested as a demand zone before the rally continues. A classic case of “buy the dip,” darling. 📊

The Awesome Oscillator was on the verge of making a bullish crossover, which would show that upward momentum was taking control. And yet, the OBV had not made new highs, unlike the price. This signaled a potential weakness in buying pressure. A bit of a letdown, if you ask me. 🤷‍♀️

Will UNI’s rally falter due to weak buying?

This can be considered the less likely scenario in the coming days. It is possible, based on the OBV indicator. But let’s not be alarmist-this is crypto, after all. 🚨

However, the price action is more important, and it suggested that a bullish structure may now be in place. A hopeful outlook, though I wouldn’t count on it. 🤞

Traders’ call to action – Wait for this price dip before buying!

The liquidation heatmap revealed a cluster of liquidity around the $5.60-$5.86 region. UNI’s price may be pulled lower to sweep this magnetic zone before resuming a bullish trend. A magnetic zone? How charming. 🧲

Given the bullish 1-day structure, traders can wait for a dip towards $5.60-$5.80 before buying. Their bullish target would be $7, the next former support that was flipped to resistance during the retracement. A target so high, it’s practically a dream. 🌌

This setup would be invalidated by a drop below the imbalance at $5.33. A drop so severe, it would make even the most hardened trader weep. 🥺

Final Thoughts

  • The UNIfication proposal is set to go live and it spurred sizeable gains over the weekend. A triumph of governance, if I do say so myself. 🎉
  • A minor price dip is likely on Monday, but if demand can step up, a UNI move to $7 and higher is possible. A dream, darling, but a dream nonetheless. 🚀

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2025-12-22 09:29