Uniswap (UNI) hits a key resistance level, v4 on-chain data surges indicating a new cycle for Decentralized Finance? | UNI price prediction

Uniswap (UNI) has performed strongly recently, with a current price of $11.02, a 24-hour rise of 4%, and a big pump of 60% this month, continuously challenging the resistance level. On-chain data shows a surge in Uniswap v4 adoption, with total volume surpassing $110 billion and TVL exceeding $1.03 billion. The technical outlook is bullish but RSI is overbought, so short-term caution is needed regarding profit-taking risks, with key support to watch at the $10 level. This article will provide an in-depth analysis of the latest UNI market trends, v4 on-chain indicators, and future trend predictions.

Latest UNI market overview: strong rise, active trading

The Uniswap governance token UNI is currently trading at $11.02. It has seen a strong rise of 4% in the past 24 hours, while the cumulative increase over the past month has reached as high as 60%, and the price is continuously trying to break through the key resistance area.

In the past 7 days, the price of UNI fluctuated between $9.78 and $11.30. The recent upward momentum is mainly attributed to the significant increase in overall trading activity and market sentiment in the decentralized finance (DeFi) sector. In terms of on-chain derivatives data, the open interest (Open Interest) grew by 4.76%, reaching $754.7 million; while the daily spot trading volume surged by 25%, reaching $427.5 million.

The inflow of funds and the increase in active positions indicate that market participants' confidence in the current wave of DeFi token rise is recovering. Although there is a certain risk of profit-taking in the short term, as long as the price remains stable above the psychological level of $10, the overall market structure still maintains a bullish trend.

Uniswap v4 on-chain metrics surge: DEX leader position solidified

Uniswap's recent strong performance has been solidly supported by its latest version v4's robust on-chain data. The data shows:

• The cumulative trading volume of v4 has surpassed an astonishing $110 billion milestone.
• The total locked value of the platform (TVL) has successfully crossed the $1.03 billion mark.
• According to DeFiLlama data, Uniswap's decentralized exchange (DEX) had a trading volume of $26 billion in the past 30 days.

Unichain (L2) has become the absolute main force, with the Hooks ecosystem flourishing. Currently, over 75% of Uniswap trading activity is concentrated on its native Layer 2 scaling solution Unichain. In contrast, the trading share of the Ethereum mainnet has dropped below 20%, highlighting the key role of Layer 2 scaling in user experience and cost. The core innovation of v4, 'Hooks' ( hook ), has seen rapid ecological development, with over 2,500 liquidity pools deploying customized hook logic. Innovative protocols like Bunni and EulerSwap have each surpassed $1 billion in trading volume. With low gas fees and fast block confirmation times, Unichain has become the third largest Layer 2 network by usage. The development history and recent upgrades of v4: Uniswap v4 officially launched on January 31, supporting the first batch of 10 blockchain networks including Ethereum, Arbitrum, and Base. In the July upgrade, v4 further expanded the support range for smart contract wallets, adding cross-chain interoperability integration with Hyperbridge and LayerZero (ZRO). As of now, v4 has successfully processed over 640 million on-chain exchange transactions.

UNI Technical Analysis: Short-term Adjustment Risk in Bullish Trend

The current UNI price is $11.03, slightly below the upper Bollinger Band at $11.63 and the recent high of $11.30. The Relative Strength Index (RSI) is currently at 71.30, indicating that the market has entered the Overbought zone, which is a signal to be cautious for short-term cryptocurrency trading. The key 20-day Simple Moving Average (SMA) is at $9.73, currently providing strong support below and is far below the current price.

The price pattern of UNI presents a typical "stair-step" rise, accompanied by slight consolidation, which is a common characteristic of a strong upward trend. However, the RSI consistently remaining above 70 without undergoing sufficient consolidation may trigger profit-taking actions by short-term traders.

Key points for future trends

• Upside potential: As long as the UNI price remains above the important moving averages (especially the 20-day SMA) and the volume can continue to provide bullish momentum, the uptrend is expected to continue. If it can effectively break through the $11.30 resistance level, the next target resistance area is around $12. Continued breakthroughs at this level could open up space towards the $13-$14 range.
• Downside risk: If the price encounters resistance at the resistance level and simultaneously the RSI corrects from the Overbought zone, it may trigger a pullback towards the $9.70-$10 key support area. However, as long as this support area can hold firm, the overall bullish technical structure of UNI will remain unchanged.

Conclusion: Uniswap (UNI) maintains a significant upward trend due to strong fundamentals (impressive v4 on-chain data, dominant Layer2 adoption) and positive market sentiment. Although short-term technical indicators (RSI Overbought) suggest a pullback risk, the overall structure above the key support level of $10 remains bullish. Investors need to closely monitor the breakout situation at the $11.30 resistance level, changes in volume, and the cooling process of the RSI, as these will be key factors in determining whether UNI can continue its rise and challenge the $12 target or even higher. The ability of the DeFi summer market to sustain itself is of significant directional importance for UNI's trend.