Uniswap price is showing signs of a bullish reversal after breaking out of a months-long downtrend, fueled by hype over new governance proposal that could spark $38M in monthly UNI buybacks. Summary Uniswap price surged 117% from $4.73 to $10.30, with momentum supported by a bullish 9/21 EMA crossover and strong trading volume. The surge was driven by the recently introduced “UNIfication” proposal, which establishes protocol-level fees and buyback mechanism, with voting expected to conclude around Dec. 3. Uniswap price technical analysis Uniswap (UNI) price has recently broken out of a descending channel that contained price action since mid-August, suggesting a potential trend reversal from bearish to bullish. The price broke above the channel resistance with explosive volume, surging 117% from the $4.736 low at the retest of the channel’s lower boundary to a peak of $10.30. The EMA 9 (cyan) has crossed above EMA 21 (yellow), signaling a shift in short-term bullish momentum. Uniswap price has since pulled back from overbought levels, but continues to hold the local support around $8.15, marked by the 0.618 Fibonacci retracement of the rally. Volume remains elevated, but the price’s overextension from the EMA cluster increases the risk of a deeper retracement toward the 0.382 Fib to around $6.8. Uniswap price 1D chart | TradingView Why did Uniswap price rally? Uniswap price rally appears to have been driven by the recently introduced “UNIfication” proposal, which turns on protocol fees for Uniswap v3 and v2 pools for the first time. The fees would be directed toward UNI buybacks. According to one analyst, it could generate roughly $38M in monthly UNI buybacks. https://twitter.com/haydenzadams/status/1987990314997739625 The proposal includes a 22-day governance process: a 7-day comment period, followed by a 5-day snapshot vote, then a 10-day on-chain voting/execution window. Since the proposal was published on Nov. 11, then adding 22 days gives a tentative end date around Dec. 3. https://twitter.com/haydenzadams/status/1988044454939279379
