The price of UNI on Uniswap has shown resilience, rising 0.6% in a day and 14.24% over the week. Key factors for this growth include legal initiatives and active network usage.
Reasons for UNI Price Increase
On August 11, the Uniswap Foundation proposed adopting a legal structure called DUNA, which would recognize UNI governance decisions and facilitate the activation of the long-awaited fee switch.
This could redirect around $90 million per month to the DAO treasury or token holders. The announcement boosted UNI's price by 6%, as analysts pointed to reduced regulatory risk. The DAO vote is expected by August 18.
Ethereum Network Effects
Recent data indicates that Uniswap swaps accounted for 15% of Ethereum's gas usage as of August 11, with ETH transaction volumes nearing record highs. This contributed to UNI's 24-hour revenue of $3.27 million. However, ETH's 2.3% decline on August 12 slightly capped UNI's upside.
Uniswap Price Analysis
On the 4-hour chart, UNI price is trading sideways around $11.20 after testing resistance at $11.60. Support has formed at $10.95, with increased buying interest around $10.60. The RSI at 64.41 suggests more room before overbought conditions, supporting the case for another push higher.
Key resistance levels are $11.60 and $12.14, with a breakout opening the door to $12.85. If bulls fail to hold $10.95, the next major support is at $9.40. Short-term momentum favors buyers, but ETH's market direction will remain a critical factor in sustaining gains.
The consistent price growth of UNI on Uniswap is driven by multiple factors, including legal clarity surrounding the fee switch and active participation in the Ethereum network. Traders are now focused on key support and resistance levels that will dictate further price movements.
