Uniswap price rises 28% on 2 million token burn plan

Uniswap price rises 28% on $842 million token burn plan

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The Uniswap price rose 28% over the past 24 hours, trading at $8.42 at 2:29 a.m. EST, while trading volume increased 584% to $3.3 billion.

This comes as Uniswap Labs has teamed up with the Uniswap Foundation to push a new proposal, UNIfication, which aims to reshape the structure and future direction of the decentralized exchange.

The governance proposal from Uniswap founder Hayden Adams aims to activate protocol fees, introduce a UNI burning mechanism, and realign incentives across the ecosystem.

The announcement boosted investor confidence, with the UNI token rising to a two-month high. According to the proposal, upon launch of UNIfication, fees will apply to Uniswap v2 and large v3 pools on Ethereum.

For v2, liquidity providers (LPs) earn 0.25% per trade, with 0.05% allocated to the protocol. For v3, the board will collect one-fourth or one-sixth of the fees for the liquidity providers, based on the rate level.

The proposal calls for burning 100 million UNI, worth $842 million at current prices, from Uniswap’s coffers, retroactively. This represents the amount that would have been burned if the fees had been active since the start of the protocol.

The proposal brings sustainability to the growth financing model as the firm administration would allocate an annual budget of UNI 20 million from 2026.

The proposal, if approved by the DAO, would set a new precedent for decentralized decision-making.

Could the proposal still push UNI’s price higher?

Uniswap price on recovery, aims to rally over key resistances

The UNI Prizeafter bottoming within the $4.79 support in May, it staged a sustained rise to clear major resistance.

The rise allowed the Uniswap price to reach a local high of $12.29, as indicated at the Fibonacci retracement levels.

After reaching this resistance, UNI’s price went through a retracement, trading within the confines of a descending channel pattern as the bears took advantage of the death cross that had formed earlier at the $8.28 level.

However, after reaching the $4.79 support again, and as a result of the board proposal, the Uniswap token price has since recovered above the upper limit of the descending channel. The last 3-day candle is rising above major resistance at the Fibonacci retracement level.

As a result of the propelled prices, UNI moved above both the 50-day and 200-day Simple Moving Averages (SMAs) over the three-day period, reinforcing the overall bullish outlook, but it has since traded slightly below price.

Meanwhile, the 50-day SMA ($8,488) is approaching the 200-day SMA ($8,611), which could result in a golden cross. This could allow the bulls to push the price even further.

The Relative Strength Index (RSI) is also supporting the bullish rally, with the RSI recovering below oversold levels to now rise above the 50 center line level, currently at 55.82, as momentum increases.

Additionally, the Moving Average Convergence Divergence (MACD) has turned positive, with the blue MACD line now crossing above the orange signal line, but remaining below the zero line. This supports the rally and alerts traders to minimal bullish signals.

UNI Price Prediction: Bulls Eye $10 and above

According to the UNI/USD chart analysis over the three-day time frame, all indicators, including the RSI and the MACD lines, point to a continued bullish rally.

If UNI price breaks above the 0.382 Fibonacci level at $9.41, the next possible prices are above the $10 level, with the next major support level at the 0.236 Fib level at $10.52 and the 0 Fib level at $12.29.

Conversely, if the current rally is short-lived and sellers start taking profits, Uniswap price could return to the $0.618 Fib level at $7.66 or the 0.786 Fib level at $6.4 within the bounds of the descending channel.

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