Why Uniswap’s Attempt to Soar is Like a Cat Trying to Swim: Spoiler Alert, It’s Not Pretty!

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Well, well, well! Uniswap [UNI] has recently decided to make headlines, thanks to an announcement from Securitize. Yes, that Securitize, the asset tokenization platform that’s about as thrilling as watching paint dry, but hold on! They’re now plugging BlackRock’s tokenized treasury product BUIDL into their smart protocol. Sounds fancy, doesn’t it? Almost like putting a bow tie on a pig.

Then there was the Bitwise spot ETF application, which also tried to steal the limelight. The market reacted faster than a cat to a laser pointer. Within just two hours of the BUIDL integration news, UNI surged like a teenager who just found out it’s pizza night-up by over 40%! But, of course, reality came knocking, and within the same day, we saw a sharp correction that made everyone feel like they’d just stepped off a roller coaster and realized they’d left their dignity at the top.

This was a classic case of “sell-the-news,” where the excitement turned out to be as fleeting as a summer romance. The bulls were exhausted, possibly contemplating their life choices, while the bears were sharpening their claws, ready to pounce on any lingering optimism. The demand went poof! Like your motivation to go to the gym after New Year’s resolutions.

As the dust settled, long positions began closing like curtains on a bad stage play, and the falling open interest revealed that short-selling wasn’t the main event; it was more of a side show. At the time of writing, Uniswap prices had slipped back below the $4.2 key EMA resistance, a place that seems to be harder to hold onto than a bar of soap in a prison shower.

Can Uniswap reclaim the $4.6 highs?

Now, according to the Cost Basis Distribution heatmap (fancy term for “where people bought their coins”), a significant chunk of UNI was gathered at prices just under the $6 mark. Another hefty portion lingers around $7.3-$7.4, which is like finding out your favorite snack has been discontinued-disappointment all around.

These cost basis areas usually serve as strong support or resistance levels, like your mother-in-law at dinner. The nearest supply zone hovers at $3.95-$4, making it the market’s version of a bouncer at an exclusive club.

The brief rally to $4.6 was apparently utilized by traders as a chance to sell UNI at break-even or perhaps some meager profits. Until the $4 supply zone is reclaimed, swing traders will likely keep their bearish hats on, looking rather dapper with their pessimism.

The 1-day chart is painting a rather bleak picture since late November, showcasing a series of new lows that are about as uplifting as a lead balloon. The price has struggled to break local highs for six weeks-definitely a sign that sellers are still calling the shots, probably over cocktails and a hearty laugh.

In other riveting news, the decentralized exchange noted a spike in trading volume during the first week of February (thank you, DeFiLlama, for this thrilling tidbit). It peaked at a staggering $5.22 billion on February 5th, before plummeting back down to mid-January levels, settling at a charming $842 million on February 13th. Talk about a dramatic drop-like a soap opera cliffhanger!

The decrease in trade volume means a lower burn rate, but let’s not kid ourselves, this isn’t going to change the price dynamics until low volume becomes the new normal, and that’s about as likely as finding a unicorn in your backyard.

Final Summary

  • The swift rally and immediate setback last week was a classic “sell the news” type event.
  • UNI’s downtrend is set to persist despite the positive ecosystem developments.

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2026-02-14 10:56