Uniswap (UNI) has experienced a significant decline, losing 25.75% of its value over the past month and dropping to $6.93. Despite this downturn, on-chain data reveals a surge in new users, marking the fastest pace since November 2022. Santiment reported 2,295 new UNI wallets in a single day, suggesting potential for a price base if this trend continues.
The influx of new users is attributed to Uniswap v4's new features, expanded liquidity routing, and ongoing development of Unichain, its layer-2 network. DefiLlama data indicates that Uniswap v4 now holds approximately $1.44 billion in total value locked (TVL), a 17% increase over the past month. However, this activity has not yet halted UNI's decline, which includes a 3.82% drop over the past 24 hours.
Analyst Phoenix linked the decline to seller pressure after UNI tested the $10 mark. He warned that a full breakdown below $7 could push UNI toward $6 to $6.50. Santiment highlighted the $7 level as crucial, stating that holding above it with sustained network growth could lead to a test of $8, while losing $7 alongside fading wallet creation would indicate short-term excitement rather than long-term adoption.
For a recovery, UNI needs to move above $7, with $7.50 and $8 identified as key levels to reclaim. Analyst Scient noted bullish four-hour divergences on October 21 when UNI traded above $7, suggesting a potential squeeze similar to Zcash's (ZEC). Defi Rocketeer finds the $7 area more interesting than the rally near $11, expecting a $10 to $12 retest if the broader market stabilizes. CryptoBullet places major resistance at $13 to $15.