Uniswap price analysis: $56M Binance inflows hint at short-term sell pressure

Uniswap price is under pressure amid strong exchange inflows suggesting short-term selling pressure after the recent token burn proposal.

After a solid 50% weekly rally, Uniswap was trading at $8 at press time, down 6.7% over the past day. Traders have taken notice of the token’s sharp rise, but new data suggests some selling pressure could be building up in the short term.

Uniswap’s (UNI) 24-hour trading volume has dropped 49% to $1.14 billion, showing that trading activity has slowed after a busy week. According to CoinGlass data, UNI’s derivatives volume also fell nearly 50% to $1.83 billion, while open interest slipped 16% to $570 million.

This means fewer traders are holding leveraged positions, often a sign that many are locking in profits or waiting for a clearer market direction.

Governance proposal sparks “sell the news” moment

More than $56 million worth of UNI flowed into Binance over the course of the last week, making it the largest of the major ERC-20 tokens, according to a Nov. 13 analysis by CryptoQuant contributor CryptoOnchain. This kind of large inflow often indicates that some holders are getting ready to sell, especially after a big price move.

Interestingly, this comes just as the Uniswap Foundation proposed a major governance update on November 10. The plan would activate the long-awaited “fee switch,” taking 0.05% of LP fees and distributing them to UNI holders.

It also includes burning 100 million UNI from the treasury and redirecting Unichain sequencer fees toward regular token burns.

If approved, these changes would turn UNI from a pure governance token into a yield-bearing, deflationary asset, potentially cutting supply by over 5% a year. Analysts, including CryptoQuant CEO Ki Young Ju, believe this could create a “supply shock” and fuel another leg higher.

Still, the $56 million exchange inflow suggests that some large holders may be taking profits ahead of the vote. This shows that traders are cashing out following the major announcement, a classic “sell the news” event.

Uniswap price technical analysis

UNI is currently consolidating around the $8 zone after trading between $5.16 and $9.71 over the previous week. Following the recent spike, the Bollinger Bands show mild compression, indicating decreased volatility.

With the relative strength index at 59, the token is no longer in overbought territory and is showing neutral momentum. The MACD and momentum indicators continue to flash buy signals despite the decline, indicating that bullish sentiment persists.

Most moving averages, including the 10, 20, 30, 50, and 200-day EMAs, are still in a bullish configuration, suggesting that UNI’s general upward trend is still intact. Short-term support is near $7.10, and the immediate resistance is the upper Bollinger band, or $8.55.

Failure to hold support could result in a retest around $6.90, but a break above that could pave the way back towards $10.