Uniswap’s strong weekly rally appears to be cooling off. After surging nearly 50% over the past week, UNI has slipped to $8, marking a 6.7% decline in the last 24 hours. The pullback comes as new on-chain data shows a rise in exchange inflows, suggesting that some holders may be taking profits following the recent excitement around Uniswap’s governance proposal.
Trading Activity Cools After the Rally
UNI’s momentum has slowed significantly.
- 24-hour trading volume: down 49% to $1.14 billion
- Derivatives volume: down 50% to $1.83 billion
- Open interest: down 16% to $570 million
The drop in leveraged positions typically signals that traders are de-risking or waiting for clearer market direction. After last week’s sharp rally, investors appear cautious about further upside.
$56M Binance Inflow Signals a ‘Sell the News’ Reaction
According to CryptoQuant contributor CryptoOnchain, more than $56 million worth of UNI flowed into Binance over the past week the largest inflow among major ERC-20 tokens. Large exchange inflows often precede sell-offs, as holders move tokens to exchanges to take profits.
This comes shortly after the Uniswap Foundation unveiled a major governance proposal on Nov. 10, which generated substantial buzz in the market. The proposal includes:
- Activating the long-awaited fee switch (0.05% LP fees redirected to UNI holders)
- Burning 100 million UNI from the treasury
- Redirecting Unichain sequencer fees toward ongoing token burns
If approved, UNI would transition from a pure governance token into a yield-bearing, deflationary asset, with the potential to reduce supply by more than 5% annually. Some analysts, including CryptoQuant CEO Ki Young Ju, believe this could trigger a future “supply shock.”
Still, the large Binance inflow hints that some big holders may be cashing out ahead of the vote — a classic “sell the news” scenario.
Technical Outlook: Bullish Structure Remains Intact
Despite the recent decline, UNI’s broader trend remains favorable.
- Consolidation zone: Around $8
- Last week’s range: $5.16 to $9.71
- Bollinger Bands: Slight compression → cooling volatility
- RSI: 59 (neutral, no longer overbought)
- MACD & Momentum: Still showing buy signals
- EMAs (10, 20, 30, 50, 200): All aligned bullishly
Key Levels to Watch
- Support: $7.10
- If this breaks → possible retest at $6.90
- Resistance: $8.55 (upper Bollinger Band)
- Breakout could reopen the path toward $10
Overall, while UNI is facing short-term selling pressure, its long-term structure remains strong, especially if the governance proposal passes and shifts UNI into a deflationary, yield-generating asset.
