After a volatile week that saw sharp sell-offs across decentralized finance (DeFi) tokens, Uniswap is showing renewed signs of strength.

Traders and investors appear to be regaining confidence as derivatives data and market volume paint a cautiously optimistic picture of a potential recovery toward the $7.50 price target.

Open Interest Data Shows Renewed Trader Engagement

Open interest data from Coinalyze reveals that Uniswap’s derivatives market is stabilizing after an aggressive round of liquidations earlier in the week. Aggregated open interest, which had dropped steeply below $160 million, has since steadied at similar levels — suggesting that traders are cautiously re-entering positions.

Source: Open Interest

This stabilization typically indicates that speculative leverage has been flushed out, allowing for a healthier market structure to emerge. The renewed but controlled build-up in open interest may reflect early signs of bullish sentiment returning to the market. If participation continues to rise, the coin could experience short-term volatility spikes as traders anticipate a potential breakout toward the $7.20–$7.50 resistance zone.

Market observers note that the rebound in open interest coincides with a broader recovery in Ethereum-based DeFi tokens, hinting that confidence is gradually improving after weeks of uncertainty.

Market Data Highlights Strong Market Recovery

According to BraveNewCoin, Uniswap’s market capitalization stands at approximately $3.99 billion, supported by a 24-hour trading volume of $425 million. The token’s price has surged 9.34% over the past day to reach $6.65, marking one of the strongest daily recoveries among major DeFi assets.

Source: BraveNewCoin

This price rebound aligns with increasing liquidity and improving sentiment across the decentralized exchange sector. Analysts suggest that sustained trading activity above $6.50 could confirm a shift in momentum, paving the way for the token to challenge the next resistance range between $7.50 and $8.00. A decisive close beyond that level could trigger a broader rally, potentially attracting new inflows from both spot and derivatives markets.

However, the $6.30–$6.40 zone remains critical support. Failure to hold above this level could invite renewed selling pressure and stall the recovery attempt.

Technical Indicators Signal Bullish Potential

At the time of the report, TradingView reflects early bullish signals forming on the UNI/USDT daily timeframe. The Chaikin Money Flow (CMF) reading at 0.15 indicates growing capital inflows, while the MACD histogram, though still slightly negative at -0.110, shows narrowing red bars — often a precursor to a bullish crossover.

Source: TradingView

Price action has stabilized following a steep dip toward the $5.50 range earlier this week. The current structure suggests that the coin may be building a base for an upward continuation. If bulls maintain price control above $6.40 and drive a clean breakout over $7.20, momentum could quickly accelerate toward the $7.50 short-term target, with potential to extend into the $8.00–$8.20 area if volume continues to climb.