- Price Drop: UNI fell 5.10%, breaking $4.10 multi-year support and signaling bearish momentum.
- Trader Sentiment: Short-leveraged positions rose, indicating intraday traders expect further downside.
- Investor Behavior: Long-term holders accumulated UNI, moving $1.26 million off exchanges despite market weakness.
Uniswap — UNI, has lost a critical support level that has been holding for over a year, raising concerns among traders. UNI’s price fell more than 5% recently, touching around $3.85. Trading volume also dropped by 9% to $395 million, showing a rise in caution and fear. Short-leveraged positions have been increasing, suggesting traders expect further downside. This combination of technical weakness and bearish sentiment makes the market closely watch UNI’s next moves.
Price Action and Technical Levels
Looking at the weekly chart, UNI failed to hold the $4.10 support and closed the week below that level. This support had been steady since March 2022, giving it significance in the eyes of traders. Once broken, the weekly candle signaled a shift in market sentiment toward bearishness. If UNI does not recover above $4.10, the next major support could be near $2.30, representing a potential 45% decline from current prices.
Despite the breakdown, technical indicators show mixed signals. The Average Directional Index (ADX) stands at 20.32, below the 25 threshold, suggesting that the current trend lacks strong momentum. The Money Flow Index (MFI) sits around 44.32, indicating neutral buying and selling pressure. While price action points toward downside risk, these indicators suggest there is no decisive force currently dominating the market.
Market psychology appears to reflect caution rather than panic. Traders are watching key levels closely, and short-term momentum could accelerate if UNI fails to reclaim $4.10. For now, daily and weekly price action remains critical for determining whether the decline will continue or if buyers step in to defend the broken support.
Derivatives and Investor Behavior
Derivative data shows a clear tilt toward bearish sentiment. According to CoinGlass, the highest trader interest lies at $3.69 on the downside and $3.99 on the upside. Short-leveraged positions total around $2.10 million, while long-leveraged positions reach $1.63 million. This imbalance indicates that intraday traders expect more downside pressure in the short term.
At the same time, long-term investors appear to be taking advantage of the price drop. Spot inflow/outflow data shows $1.26 million worth of UNI moved off exchanges into private wallets. In crypto, asset outflows are generally interpreted as accumulation, suggesting that some investors are confident in UNI’s longer-term prospects despite short-term weakness.
For now, Uniswap faces a delicate balance between bearish short-term sentiment and cautious long-term accumulation. Price remains below a critical support level, and technical momentum is weak. Traders will likely watch the $4.10 level closely, while the $2.30 support represents a potential downside target. The combination of rising short positions and selective accumulation creates a market that is cautious but not fully capitulated.