Uniswap (UNI) has extended its three-day recovery, gaining nearly 5% on Friday to trade around $3.50. The move comes as on-chain metrics and derivatives data point to improving market sentiment, though the token still faces a critical technical test near the 200-day exponential moving average (EMA).
Uniswap Dominates Stablecoin Trading
Uniswap continues to solidify its position as the leading decentralized exchange (DEX) for stablecoin trading. According to the protocol, it processed 58% of all EVM stablecoin-to-stablecoin swap volume over the past 30 days. This dominance reflects deeper liquidity, lower trading costs, and improved capital efficiency, making the platform increasingly attractive for traders and liquidity providers.
Data from DeFiLlama further underscores Uniswap's strength, with approximately $8.7 billion in DEX trading volume over the past seven days, outperforming major competitors such as PancakeSwap and Pump.fun. The sustained growth in trading activity reinforces confidence in Uniswap's ecosystem and supports long-term demand for the UNI token.
Derivatives Data Points to Growing Retail Optimism
Retail sentiment in the derivatives market has also improved. According to CoinGlass, UNI futures open interest increased 6% over the past 24 hours to approximately $244.8 million, indicating that traders are opening new leveraged positions. The positive sentiment is reinforced by a funding rate of 0.0076%, suggesting that long-position holders are willing to pay a premium to maintain bullish exposure. The combination of rising open interest and positive funding rates typically reflects growing confidence among speculative traders that UNI could continue its upward trend.
Technical Analysis: Key Resistance at $3.90
On the 4-hour chart, UNI/USD has reclaimed the 50-day EMA at $3.08, a positive short-term signal. However, the 200-day EMA near $3.90 remains the most significant resistance level. A successful breakout above this area could allow UNI to challenge its previous swing high around $4.20.
Momentum indicators are mixed. The Relative Strength Index (RSI) has climbed to 74, placing UNI in overbought territory and suggesting the rally may pause or consolidate in the near term. Meanwhile, the Moving Average Convergence Divergence (MACD) remains firmly in positive territory, with the MACD line holding above its signal line, indicating that bullish momentum remains intact.
If buyers remain in control, the 200-day EMA at $3.90 will be the next major hurdle. A decisive close above that level could accelerate gains toward the previous swing high near $4.20. On the downside, initial support is located around $3.10, where the 50-day EMA converges with a key retracement level. A pullback toward this zone could attract fresh buying interest if the broader uptrend remains intact.
Outlook
With Uniswap maintaining its dominance in stablecoin trading and derivatives activity pointing to growing retail optimism, the outlook for UNI remains constructive. However, bulls must overcome the resistance cluster above $3.90 to confirm the next leg of the recovery. For broader market context, see our analysis of Bitcoin Cash Tracks Bitcoin's Rally: Key Support and Resistance Levels to Watch and Ethereum's 10% Rally Faces $1,800 Resistance: Can Bulls Break Through?.
This article is for informational purposes only and does not constitute financial advice.
