The price of Uniswap (UNI) is aiming for a breakthrough as the market awaits the results of the UNIfication vote.

The price of Uniswap (UNI) continues to hold steady above the 6 USD mark at the time of writing on Tuesday, after finishing last week with a strong close above the key resistance zone. Traders' attention is currently focused on the long-awaited UNIfication proposal, which is expected to close on Thursday and is likely to become an important catalyst for price fluctuations in the short term. From a technical perspective, momentum indicators are collectively leaning towards a positive trend, thereby reinforcing expectations of a new bullish phase forming.

The UNIfication proposal is approaching the Christmas deadline.

The long-awaited UNIfication proposal of Uniswap is expected to come to a conclusion on Thursday, marking a groundbreaking governance decision for the entire Uniswap ecosystem, and is anticipated to become an important catalyst in the short term for the UNI token.

Essentially, the “UNIfication” proposal aims to activate protocol fees and use this revenue source to burn UNI, thereby officially introducing a deflationary mechanism into the token's supply structure. This is seen as a strategic shift for Uniswap and the investor community, who have been continuously advocating for the “fee switch” — a mechanism that reallocates a portion of transaction fees previously belonging to liquidity providers to the protocol treasury or directly brings value to UNI holders.

As of Tuesday, the proposal has surpassed the necessary threshold for approval, with over 111 million UNI tokens voting in favor, while the number of opposing votes is only at 742. This overwhelming difference indicates a very high level of consensus from the community. Although the voting remains open until Christmas, the current situation is almost settled.

At the same time, aggregated data from CryptoQuant continues to reinforce the positive outlook for UNI. Both the spot and derivatives markets have recorded significant buying activity from whale wallets, amidst a backdrop of gradually cooling market conditions and dominant demand. These signals suggest that the potential for a new bullish phase of UNI in the near future is entirely justified.

Uniswap Price Forecast: The UNI Bulls are in Control of the Momentum

The price of Uniswap (UNI) has established a solid support zone around the 4.77 USD mark on Thursday, before surging more than 27% in the following two sessions and closing above the important resistance level at 5.84 USD. Although profit-taking pressure caused UNI to slightly adjust on Sunday and return to test this price zone the next day, demand remained strong. By Tuesday, UNI continued to fluctuate steadily above the 6 USD mark, indicating that the bullish trend is still being maintained.

In a positive scenario, if the zone of 5.84 USD continues to play its support role, UNI is likely to extend its recovery trend and aim for the next resistance zone around 8.63 USD.

Daily chart of UNI/USDT | Source: TradingViewTechnically, the Relative Strength Index (RSI) on the daily timeframe is currently at 54, exceeding the neutral threshold of 50, reflecting a bullish momentum gradually taking over. At the same time, the MACD indicator has formed a bullish crossover since last week and is still being maintained, further reinforcing the positive outlook in the short term.

Conversely, in the event of increased adjustment pressure, UNI may reverse and drop deeper to test the important daily support zone at 4.77 USD.

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