Uniswap Shatters $5.40 Barrier - $7.45 Looms as Next Bullish Frontier

UNI just bulldozed through a critical price wall. Traders are now scrambling to position themselves for the next leg up.

The Breakout Playbook

Resistance levels aren't suggestions—they're battle lines. When a major one like $5.40 gets decisively breached, it flips the entire market psychology. Sellers retreat; momentum buyers pile in. The chart isn't just showing price action; it's broadcasting a shift in control.

Target Acquisition

All eyes are now locked on the $7.45 zone. That's not a random number—it's the next significant technical and psychological hurdle on the higher timeframe maps. Reaching it would represent a substantial rally from the breakout point, confirming the strength of the current move. Miss this, and you're just watching from the sidelines while the smart money executes the plan.

Of course, in crypto, today's 'unstoppable trend' is often tomorrow's 'what was I thinking' lesson—usually right after you've maxed out your leverage. The path to $7.45 won't be a straight line, but for now, the bulls have the ball.

Uniswap Indicators Suggest Downside Pressure May Continue

The RSI for the week is approximately 37, which is below the halfway mark at 50 and reflects a bearish trend. The RSI is not oversold at this stage, indicating there may be further downward pressure on the price. No bullish divergence appears on the chart at this time.

The MACD line is positioned below the signal line with a negative and expanding histogram. This depicts growing bearish momentum and strengthens the prevailing bearish trend. There are neither bullish signals nor a reduction in the histogram to support the notion of an upcoming reversal.

October Marks Highest Weekly Fee Surge

The data illustrates Uniswap weekly fees in terms of the protocol over June to December, ranging between $10M and $40M. The use of Uniswap picked up in late summer, culminating in October at approximately $40M, to decline through December. Uniswap has remained strongly used with TVL in excess of $3.88B.

Given that Hayden Adams is also submitting a UNification proposal, these fees gain even more importance. By enabling protocol fees on v2 as well as v3, burning 100 million UNI, as well as directing Unichain sequencer fees directly into the protocol, it is clear that there is a direct LINK between usage and a decrease in supply. UNI’s token economics just became even more tangible.