Uniswap price crashed to a crucial support level and did not participate in the recent crypto market bull run. 

Uniswap (UNI) has been hovering around $5.30 over the past four weeks, a price that’s down 72% from its December highs. However, the coin has two potential catalysts that may trigger a short squeeze in the coming weeks: a megaphone chart pattern and Unichain’s market share growth.

Third-party data indicates that the recently launched Unichain network is performing well, with both volume and active addresses on the rise. 

Nansen data shows that Unichain had over 3.285 million active addresses in the last seven days. This made it the sixth-biggest chain in this metric. It overtook popular networks like Ethereum (ETH), Polygon (POL), Sei (SEI), and Arbitrum. 

Unichain’s active transactions increased by 121% to 9.48 million, surpassing Ethereum’s 8.63 million. Similarly, the network’s fees soared by 84% to 8.6k.

More data by DeFi Llama shows that Unichain has become one of the top players in the decentralized exchange industry. It processed tokens worth $1.7 billion in the last seven days, a 36% increase from the previous period. This increase brings the monthly transactions to over $3.2 billion. This growth is impressive since it was launched in February. 

Meanwhile, Uniswap continues to hold a significant market share in the decentralized finance sector despite rising competition. Its network processed $61.4 billion in transactions over the last 30 days — more than PancakeSwap and Raydium combined.

This growth has pushed Uniswap to make substantial fees this year. TokenTerminal data indicates that it has generated over $328 million this year, surpassing Ethereum’s $242 million. These fees are usually routed to liquidity providers on the network.

Uniswap price has formed a unique pattern

The weekly chart shows that UNI price has dropped to a significant support level around $5, where it has repeatedly held throughout the year. This level aligns with a trendline connecting the lowest swing points since June 2022.

Notably, UNI has formed a broadening wedge pattern, commonly known as a megaphone — often interpreted as a bullish reversal signal.

Given this technical setup, Uniswap’s price may bounce back in the coming weeks. The initial target to watch is last year’s high of $19.30, which would represent a 255% increase from current levels. However, a drop below the lower edge of the wedge pattern would indicate further downside risk.