Uniswap, one of the leading DEXs, facilitated nearly $1 trillion in trading volume over the past year, according to Token Terminal on January 28. The milestone highlights the platform’s continued significance in the DeFi sector, attracting both retail and institutional traders.

Source: X

Despite the impressive trading activity, the price of Uniswap’s governance token, UNI, has struggled to maintain gains, reflecting cautious sentiment among investors.

Recent on-chain data suggests that major holders are positioning early. MyToken reported on January 17 that the top 100 wallets accumulated 12.41 million UNI tokens over the past eight weeks.

Historically, whale accumulation often precedes price movements, and analysts note that this pattern could signal a potential breakout if market conditions, particularly Bitcoin trends, are favorable.

Source: X

Uniswap UNI Faces Consolidation Below Key Resistance

TradingView analysis from January 28 shows UNI/USD trading around $4.8–$5.0, with a bearish to neutral sentiment. The price is below the Ichimoku cloud, indicating that the overall momentum remains weak.

The bearish Kumo cloud acts as a resistance level between $6.4 and $7.3, while the short-term support level is near $4.0-4.3. A break below the support level on a weekly closing basis may push UNI towards the historical demand levels of $3.0-3.5.

Source: TradingView

The technical analysis supports the cautious outlook. The Tenkan-sen is below the Kijun-sen, and the weekly charts form lower highs since the late 2025 rally to $15-16.

The RSI is around 37-40, suggesting weak bullish momentum, while the MACD remains negative, indicating persistent bearish pressure despite a slight pause in the decline.

Also Read: Uniswap Whales Accumulate 12.4 Million UNI as Price Holds Near $5

Protocol Upgrades and Whale Activity Highlight Growth Potential

Meanwhile, Uniswap has introduced a deflationary mechanism through its latest “UNIfication” upgrade. The platform will now use the fees to buy back and burn the tokens.

Recently, 100 million UNI tokens were burned, and every year, 4 million tokens are destroyed. With an estimated revenue of $26 million, the value of UNI is now more closely linked to the performance of the decentralized exchange.

Source: X

This could be the key for UNI to move upwards, but it is also a huge risk that it is taking on, as its current value of $5.4 billion is based on the continued growth of trading, according to experts.

The future of UNI appears to be a combination of steadying, buying, and improving the system. The support and resistance levels will be closely watched by the traders, as there are indications that there could be renewed momentum.

Also Read: Bitwise Registers Uniswap ETF Trust as UNI Stabilizes