Uniswap’s UNI token surged by over 8% from its intraday low on July 29, pushing above the key $4 mark. The rebound came as Uniswap founder Hayden Adams eased worries about the v4 protocol fee setup, reassuring liquidity providers that their returns won’t be cut.
After dropping to $3.74 earlier in the day, UNI climbed back to $4.06 before stabilizing around $4.02. This bounce leaves the token roughly 3% higher than its daily open and marks a more than 70% recovery from the June low near $2.35. The price action reflects a pattern of higher highs and higher lows, suggesting the market is revisiting price levels last seen in May.
Technical indicators remain supportive of the rally. The daily relative strength index (RSI) hit 66.83, signaling strong momentum without crossing into overbought territory. UNI also holds above a Supertrend support level at $3.23. Immediate resistance lies between $4.10 and $4.30, with a close above $4.15 May’s previous peak potentially confirming a sustained recovery phase.
The jump followed Adams’ explanation regarding the new fee system for Uniswap v4. Unlike earlier fears that the protocol fee would reduce liquidity providers’ earnings, Adams clarified that the fee adds to the existing liquidity provider fee rather than subtracting from it. For example, a pool charging a 30 basis point liquidity provider fee would now charge traders a total of 35 basis points, with liquidity providers still receiving their full 30 basis points and 5 basis points directed to the protocol.
This transparency helped ease concerns that fees might drive liquidity away to competing platforms. Uniswap’s governance has also been active, submitting proposals on implementing protocol fees across v4 pools and exploring deployments on Robinhood Chain, which recently surpassed $1.23 billion in weekly launchpad volume.
Despite bullish signs, the presence of a rising wedge pattern and a weak 19.77 ADX suggests UNI could face short-term volatility. Traders will be watching resistance levels closely for confirmation of a broader uptrend.
This content is for informational purposes only and should not be considered financial advice.
