Uniswap's UNI token saw moderate gains on Monday, rising 3.07% over the past 24 hours from $5.85 up to $6.03. This marks a 3-week high for UNI, capping off a bullish month of July for the cryptocurrency overall.

Trading Volumes Still Muted

Despite the upside price movement, Uniswap's 24-hour trading volume remains relatively muted at just under $100 million. This is significantly below levels seen in June during UNI's price peak above $8.

Lower volume indicates that buying interest and momentum are still tepid. Significant volumes above $300 million will be needed to confirm a bullish resurgence for Uniswap.

Technical Picture Mixed in Short-Term

Analyzing UNI's price chart, the technical picture is neutral to slightly bullish over the past few weeks. While UNI broke back above its 20-day moving average, the price remains constrained by downtrend resistance from its June highs.

Momentum indicators like the RSI are rising but have yet to break into clear bullish territory above 50. UNI will need to break above $6.50 resistance to signal a definitive uptrend.

Long-Term Trend Still Intact

Looking at the multi-month timeframe, Uniswap remains in a clear uptrend, despite its recent sideways consolidation. UNI has gained 30% over the past month and still trades significantly higher over the past 6-12 months.

This affirms Uniswap's long-term investment case as a leading decentralized exchange and DeFi protocol. Further adoption upside exists as the crypto market matures.

Prediction: Continued Rangebound Action Around $6.00

My prediction is that Uniswap will see an extended period of rangebound price action between support at $5.50 and resistance around $6.50. This consolidation will persist over the coming months barring a decisive break in either direction.

Traders can aim to buy UNI on dips towards the bottom of the range while taking profits as it approaches the top. A high-volume breakout above $6.50 is needed to signal Uniswap's next bull run.

Is Uniswap's Rally Signaling Strength for the DeFi Sector?

Uniswap's modest 3% gain contrasts with weakness across most major crypto assets, potentially indicating some relative strength specific to decentralized finance tokens.

Other DeFi leaders like Aave, Compound and Yearn.Finance are also up on the day, while Bitcoin and Ethereum trade flat to lower. This points to building momentum among DeFi protocols.

However, trading volumes remain relatively low and technicals are still inconclusive. Further confirmation through higher UNI volumes and upside breakouts are needed before declaring a new DeFi altseason. Key levels to watch are $350 million daily volume and UNI reclaiming $7.

Should You Buy Uniswap After the Recent 3% Gain?

Uniswap's 3% single-day rally back above $6.00 presents a reasonable short-term buying opportunity. However, the overall technical picture remains inconclusive given still-low volumes and horizontal price action.

Therefore, limit position sizes and consider dollar-cost averaging over the coming weeks to gain exposure while managing risks. Have a plan ready if UNI drops back towards the lower $5.00s.

For long-term holders, periods of consolidation like this allow accumulating tokens at reasonable valuations. Uniswap still holds top-tier technology and network value to drive growth over a multi-year investment horizon.