UNI price moved higher over the weekend after a key governance vote gained strong backing. The token climbed above the six level for the first time in weeks. This move followed growing support for the UNIfication proposal which focuses on token burns and protocol fees.
On Saturday UNI posted strong gains of almost eighteen percent. On Sunday the price pulled back slightly. Even with that dip the overall move stayed positive. The rally pushed UNI from near five point three to above six point one in a short time.
The timing of the move matters. Voting for the UNIfication proposal started on December twenty. At that time UNI was trading close to five point three. Since then price action has stayed firm as more votes came in. Onchain data shows the vote has already reached the required quorum. The final result will be confirmed on December twenty five.
The proposal is important for long term holders. If approved protocol fees will be turned on across older versions and selected newer liquidity pools. Those fees will be used to burn UNI tokens. This means tokens will be removed from supply over time.
There is also a one time burn planned. About one hundred million UNI from the treasury would be burned. This is meant to reflect how many tokens might have been burned if fees had existed since launch. Many holders see this as a fair adjustment.
Price action shows growing confidence. UNI closed a daily session above five point nine seven. This helped confirm a bullish structure on the chart. When price closes above past resistance it often signals a trend shift.
There is still some caution. Momentum indicators are improving but buying volume has not fully confirmed the move. This suggests some traders are waiting before committing more capital. Even so price structure remains more important at this stage.
Short term traders are watching for a pullback. There is a known liquidity zone between five point six and five point eight six. Price often revisits such areas before moving higher. This does not mean the trend is broken. It can be a healthy reset.
A dip into that zone could attract buyers who missed the initial move. As long as price holds above five point three three the bullish setup stays valid. A drop below that level would weaken the structure.
If demand holds the next upside level sits near seven. This area acted as support in the past before turning into resistance. A clean move above six increases the chance of a test higher.
Overall the weekend move shows how governance can impact price. Traders are reacting not just to charts but to changes in token design. The final vote outcome will matter but much of the optimism is already priced in.
In the short term you should expect some volatility. A small dip would not be unusual. If buyers step in again UNI could continue higher as the vote reaches its conclusion.
