Uniswap Taps V4 Fee Growth, but Liquidation Data Raises Red Flags

Uniswap's v4 protocol revenue could reach $120M to $325M annually, according to a widely shared thread. This has traders piling in fast, with Uniswap breaking above its trendline and momentum picking up as fundamentals align.

The trendline breakout has formed since the June lows near $2.50, and Uniswap is trading at $4.404 after rallying sharply through July and early August to briefly touch the $4.526 zone before pulling back.

RSI is reading 64.81, in bullish territory without being stretched, leaving room for further upside before momentum looks overextended. However, heavy long liquidations show buyers are already crowded, with a leveraged shakeout building over the past day.