- Uniswap’s UNI token surges 70% after groundbreaking burn proposal.
- Whale transactions spike as UNI price soars with token burn.
- UNI’s breakout signals potential for massive price gains ahead.
Uniswap (UNI) has witnessed an explosive surge of 70% over the past week, following the announcement of a significant governance proposal aimed at burning 100 million UNI tokens. This bold move is designed to redirect Uniswap’s protocol revenues toward token burns and liquidity provider rewards.
According to CryptoQuant CEO Ki Young Ju, the “UNIfication” proposal has the potential to push UNI into a parabolic growth phase. Ju believes this token burn will create a supply shock, further driving up UNI’s value and demand.
The recent surge in UNI’s price comes amid notable shifts in on-chain activity. Santiment, a leading on-chain analytics platform, highlighted a sharp increase in whale transactions, with daily transfers over $100,000 reaching their highest levels in four years.
This increase in whale participation often signals a market top, as long-term holders tend to become more active. Santiment also reported a significant rise in the creation of new UNI wallets, suggesting strong retail interest, possibly driven by FOMO (fear of missing out).
In a short span of just two hours, 422 whale transactions took place, reminiscent of the activity seen in February 2021, when UNI reached a local top during its previous bull cycle. Along with this surge in whale interest, 1,598 new wallets were created, pointing to growing enthusiasm from retail investors.
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UNI’s Technical Outlook: What’s Next for the Price?
The technical indicators for UNI are also reflecting a positive shift. UNI has broken free from a descending channel that had limited price action since mid-August. The Relative Strength Index (RSI) recently crossed above 50, entering the overbought zone, while the Chaikin Money Flow (CMF) indicator turned sharply positive, signaling strong capital inflows.
Source: Tradingview
At its current price of around $8.70, UNI has broken through key Fibonacci retracement levels, with support ranging between $6.70 and $5.90. If the price maintains this support, it will validate the breakout and set the stage for further upward movement.
Resistance levels are located at the 1.618 Fibonacci extension near $9.26, with additional targets at $10.45 and $12.64. A sustained move above $10 would solidify a trend reversal and open the path for UNI to potentially reach $13–$14.
However, if UNI fails to hold above the $6.70 support level, there is a possibility of a pullback toward $5.23 or even $4.72. As the token burn proposal begins to take shape, Uniswap’s future price action remains a key area of focus for investors, with both whales and retail participants keeping a close eye on potential gains.
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