Uniswap falls amid long liquidations and strong seller pressure

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Uniswap drops 7.21% today to $6.86

Highlights

Uniswap v4 recorded $44 billion in trading volume over 30 days, accounting for nearly half of all protocol activity and indicating strong engagement.
Recent market action featured $1.45 million in long liquidations and $10,000 in short liquidations on major exchanges, alongside pronounced selling pressure.
UNI/USD trades sharply lower near $6.863 with most technical indicators signaling continued downside and an expected 2 to 3 day range of $6.349 to $7.1222.

Selling pressure intensifies despite surging Uniswap trading activity

Uniswap v4 recorded more than $44 billion in trading volume over the last 30 days, accounting for nearly half of all protocol activity and signaling robust user engagement, according to Tronweekly. This period also saw $1.45 million in long liquidations and $10,000 in short liquidations across Binance, Bybit, and OKX, as reported by Tokenpost, leading to abrupt forced selling that intensified market volatility. Additionally, Uniswap was listed as the 27th-ranked crypto asset with a market capitalization of approximately $4.46 billion, according to Tokenpost. Despite substantial turnover and platform activity, these factors have coincided with pronounced selling pressure in the current session.

Bearish momentum confirmed as UNI struggles below key moving averages

On the technical front, UNI/USD is trading below the MA-20 and MA-50 on the hourly chart, indicating ongoing short- and medium-term downside pressure. The price holds above the MA-200, which provides a measure of long-term support, while the Ichimoku Kijun level at $7.0985 acts as the nearest resistance. Among indicators, MACD and ADX show 'Sell' signals, with RSI reading 36.86 and CCI in an oversold condition. Stoch RSI is neutral, suggesting potential exhaustion, while Bull/Bear Power confirms seller dominance and the Awesome Oscillator sits in a neutral state, not confirming the prevailing trend. Overall, intraday momentum aligns with a majority of bearish signals, though some oscillators are mixed.

Downward risk elevated as sideways range defines near-term outlook

For the next two to three trading days, UNI is expected to range between $6.349 and $7.1222, reflecting its current high volatility. The probability of an upward move remains very low, with further downside being significantly more likely in the short term. A sideways corridor between support and resistance is the baseline scenario. A bullish shift would require a decisive move above the $7.0985 resistance, while further losses could develop if UNI drops below the bottom of the projected range.

Anton Kharitonov, expert at Traders Union, notes that strong protocol activity and high turnover have so far failed to offset relentless selling pressure in Uniswap (UNI). He sees technical momentum as negative, with key indicators and trend levels aligning with a bearish near-term outlook. The analyst is cautious, pointing out both fundamental interest and considerable forced liquidations. "Until UNI can reclaim key resistance at $7.0985, the downside scenario remains my base case."

Earlier, analysts noted that Uniswap was positioned above key trend lines and exhibiting signs of bullish consolidation. The latest price action marks a clear shift to downside volatility, with traders advised to monitor the $7.0985 resistance as a potential pivot for reversing current short-term weakness.

Source of Data: UNI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.