UNI rebounds, but retail selling pressure is gradually cooling down

UNI6.63%

Uniswap Token (UNI) continues to break out along with the overall recovery of the cryptocurrency market, trading around $3.44 at the time of writing on Saturday. The 7% daily increase of this decentralized exchange (DEX) token indicates a clear improvement in investor sentiment following the release of the January Consumer Price Index (CPI) report by the Bureau of Labor Statistics.

Specifically, the January CPI rose only 0.2% month-over-month (MoM)—lower than the forecast of 0.3%, while the 2.4% increase year-over-year (YoY) was also below the market expectation of 2.5%. Core CPI, which excludes volatile components such as food and energy, recorded a 2.5% YoY increase, in line with expectations.

These signals of easing inflation have injected positive momentum into risk assets, including cryptocurrencies. In this context, investors are increasingly confident that the Federal Reserve may implement at least two interest rate cuts in 2026, further supporting the market’s upward trend.

Uniswap Gains Momentum Amid Cautious Retail Investors

Market interest in Uniswap has surged this week, fueled by a notable move from BlackRock when they launched a tokenized US Treasury bond product—BUILD fund—on Uniswap’s DEX platform.

According to Robert Mitchnick, Head of Global Digital Assets at BlackRock, integrating BUIDL into UniswapX “marks a significant step forward in the interoperability between tokenized USD yield funds and the stablecoin ecosystem.”

Beyond technological collaboration, BlackRock has quietly purchased an undisclosed amount of UNI tokens, fueling bullish sentiment in the market. As a result, derivatives activity has spiked, with open interest (OI) in UNI futures reaching a peak of $263 million on Tuesday before cooling to $253 million on Friday. The decline in OI indicates that investors remain cautious and have not fully committed to believing that UNI can sustain its short-term upward momentum.

Open Futures Contract Volume on Uniswap | Source: CoinGlass

Technical Outlook: Short-term Prospects for UNI

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