Uniswap (UNI) traded up slightly by 0.65% to $9.11, mirroring a broader cryptocurrency market recovery that saw Bitcoin reclaim $86,000. The slight gains coincide with a new strategic partnership aimed at expanding decentralized finance in Japan.
SMBC Nikko Securities Partners for DeFi Gateway
SMBC Nikko Securities, Japan's third-largest brokerage firm, has signed a memorandum of understanding with Uniswap Labs, Base, and the Nyx Foundation to provide access to decentralized finance services. The initiative intends to utilize Uniswap v4 Hooks to establish a liquidity pool framework compliant with anti-money laundering and counter-terrorism financing laws.
The participating firms plan to launch the platform by mid-2027, with developmental progress shared with Japanese regulatory bodies. This follows a forecast from Standard Chartered projecting significant asset growth for Uniswap liquidity pools by 2030.
Open Interest and Market Metrics
CoinGlass data indicates that Uniswap's open interest rose from $491 million in mid-September to over $900 million by the end of the month. Although open interest dipped slightly from a September peak of $971 million, it remained elevated at $915 million, suggesting that futures traders who entered positions during the September rally have largely kept them open.
The weighted funding rate remains positive, indicating that long-buyers are paying to maintain their positions amid market expectations regarding the upcoming Federal Open Market Committee meeting. Meanwhile, Binance's long/short ratio declined from 1.86 on September 25 to 1.57, pointing to some long traders closing out their positions.
Price Action and Technical Outlook
September's gains have begun to cool, with UNI consolidating in a symmetrical triangle pattern. The Average Directional Index (ADX) reading above 50 indicates that Uniswap remains in an uptrend, though the downward-sloping ADX line suggests the current uptrend is losing strength.
If UNI closes below the lower trendline support of the symmetrical triangle, the price could test the 20-day exponential moving average support at $8.48. Conversely, a breakout above the 78.7% Fibonacci resistance level of $9.26 could open the door for a move toward $10.
