UNI price jumps ahead of the 100 million Uniswap token burn
The UNI price token jumped for the third consecutive day, reaching its highest level since Nov. 20 as the Unification vote started.
- UNI token price rose for three consecutive days, reaching its highest level since Nov. 20.
- Most members of the community are voting in favor of the Unification proposal.
- The vote will see over 100 million UNI tokens incinerated.
Uniswap (UNI) token jumped to a high of $6.35, up by 32% above its lowest level this month, bringing its market capitalization to over $5.7 billion.
The UNI token jumped as the unification vote started, with most users voting for it overwhelmingly. At press time, 34.1 million UNI tokens voted for it, and just 740 were against the proposal. This means that it will pass as the quorum of 40 million is nearing.
The Unification vote will have some major implications on the network, with the most important one being the 100 million token burn. The tokens will come from the treasury and will represent the approximate tokens that would have been burned if the feature had existed from the beginning.
The Unification vote will also lead to more token burns in the future, as most of the network fees will be incinerated. It will also launch aggregation hooks, turning Uniswap v4 into an on-chain vote aggregator that collects fees on external liquidity.
The upcoming token burns come as the supply of UNI tokens in exchanges has been in a strong downward trend in the past few months. There are now 664.39 million UNI tokens in exchanges, down from 683 million last month. Falling tokens in exchanges is a sign that investors are buying their tokens.
Whales have also increased their tokens from this month’s low of 8.22 million to 8.1 million today.
However, like other exchanges, Uniswap’s volume has plunged in the past few days because of the recent crypto market crash. It handled $79 billion in volume last month, down sharply from the year-to-date high of $125 billion.
UNI price technical analysis
The daily timeframe chart shows that the UNI token bottomed at $4.8720 on Dec. 18 and then rebounded to the current $6.330. It formed a double-bottom pattern with a neckline at $10.2.
The rebound also happened after it formed a falling wedge pattern, which is a common bullish divergence sign. It has also moved to the Major S/R pivot point of the Murrey Math Lines tool.
The token moved above the 50-day Exponential Moving Average, while the Relative Strength Index has moved to 60, up from this month’s low of 34. Therefore, the token will likely continue rising as bulls target the strong pivot reverse point of the Murrey Math Lines tool at $7.8125.
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