Why Is Uniswap Price Up Today? Burn Proposal Sparks 47% Rally

Governance Shift Sparks Bullish Momentum for UNI

Uniswap (UNI) is making headlines with a whopping 47% price surge in 24 hours, rising to $9.77, its highest in months. The rally was preceded by a new proposal on governance that might revolutionize the tokenomics and long-term worth of UNI. Bulls are once again looking up at the fundamentals of the project and the potential upside in this new Uniswap Price Prediction perspective, as the next key target is at the $10-12 range.

Governance Shift Ignites Investor Confidence

The rally began after Uniswap founder Hayden Adams proposed the activation of the long-awaited “fee switch” mechanism alongside a new token burn feature. This dual proposal, known as “UNIfication,” would allocate part of trading and sequencer fees toward perpetual UNI burns, directly linking the token’s value to network activity.

SOURCE: X

The primary criticism of UNI over the years was that it had no value capture. This proposal alters the narrative, making the crypto not just a token of governance but one with yield potential. Adding token burns will bring in deflationary pressure, which is similar to the EIP-1559 in Ethereum. Traders reacted instantly, pushing the price past $9.50 and with an increasing volume, indicating renewed confidence in the long-term economics of Uniswap.

Technical Breakout Points to Extended Upside

From a technical perspective, UNI's chart shows a strong bullish setup. The asset had consolidated within the range of $6 and $7 before it broke out, regaining its 20-day SMA of $6.81, as well as the 200-day EMA of $8.15. Momentum strength is evident through indicators, with the RSI at 74.5 indicating strong buying activity, but not yet overbought.

UNIUSD 1D CHART | SOURCE: CoinMarketCap

The MACD histogram is inverted, which contributed to the strength of the bullish momentum. Analysts point to immediate support now at $9.48, while a close above this might lead the price up to the next Fibonacci extension of $11.14 and even $12. Traders, however, should also be sensitive to the short-term pullbacks where early buyers look to take profits after the parabolic upward move.

Uniswap Price Prediction: Path Toward $12 and Beyond

According to market analysts, if UNI sustains its breakout, it could rally up to $12-$15 in the next few weeks, backed by DAO's approval of the proposal to activate fees. The deflationary model of the proposal and long-term alignment of fees positively make UNI more enticing to retail and institutional investors.

UNIUSD 3D CHART | SOURCE: X

However, there remains the need to be cautious, as volatility comes along with powerful rallies. It is important for the token to keep the support above $8.50, proving that there is continuation of the trend. Overall, the sentiment on Uniswap Price Prediction is optimistic, with traders betting in anticipation of DAO voting, which is a possible boost for the next significant uptrend in the journey of the DeFi giant.