Uniswap Rebounds, Then Retreats Following Trump’s Warning to Iran
The price of Uniswap’s UNI token dropped 6.36% to $7.3864 over the past 24 hours, despite a sharp intraday recovery. Earlier, UNI had rebounded nearly 9.5% from a low of $6.82 after a flash crash but failed to sustain momentum, facing rejection at the $8.40 resistance level.
Mounting geopolitical pressure in the Middle East—particularly renewed threats from former U.S. President Donald Trump—has weighed heavily on market sentiment.
In a direct message early Friday, Trump warned that Iran would face “more brutal” military action if it failed to reach an agreement with the U.S., escalating fears of broader regional conflict.
Technical Snapshot: Support and Resistance Levels
UNI’s volatility began with a sharp 12.5% drop from $7.90 to $6.82 on heavy trading volume estimated at 8.48 million tokens. However, the token quickly recovered to above $8.40, forming a V-shaped reversal pattern.
Volume peaked between 13:31–13:44 UTC, indicating significant trader activity as UNI surged through $7.30 resistance.
Despite the strong bounce, the recovery lost steam at $8.40, and price eventually retraced back to $7.38, where it is currently consolidating.
Key support is seen at $7.26, with several successful retests indicating short-term stability.
Immediate resistance lies near $7.50, and traders are watching closely for any breakout confirmation.
Geopolitical Risks Undermining Market Confidence
The broader crypto market has shown heightened sensitivity to political developments, and the UNI token is no exception. Trump’s aggressive posture toward Iran has increased uncertainty, leading to renewed selling pressure across various digital assets.
Risk-off sentiment is dominating short-term trading, causing many investors to move to the sidelines or favor stablecoins.
UNI’s failure to hold above $8.00 signals a potential return to sideways consolidation, unless global tensions ease or technical momentum strengthens.
Outlook for Traders and Investors
With support near $7.26 and resistance at $7.50, UNI is currently trapped in a narrow range. A break below support could expose the token to a further drop, while a reclaim of $8.00 would be needed to re-establish bullish momentum.
Traders are advised to monitor macro headlines closely, as geopolitical developments are now the main driver of volatility.