On June 1, Uniswap (UNI) fell 2.30%, falling below a key support level that had held since February. The move came as bearish sentiment intensified in the market, while traders and investors remained actively engaged in the token.
According to data from CoinMarketCap, UNI fell to $2.97 in the last 24 hours.
During the same period, trading volume jumped 35% to $110.95 million, signaling increased market participation despite the continued decline.
Has UNI lost a critical level of support?
According to the TradingView daily chart, UNI remained in a downtrend and continued to trade below the 200-day exponential moving average (EMA).
The latest decline pushed UNI below the $3.02 support level, which it had been defending since February 5. The token had spent the previous four days consolidating in a tight range around this level before sellers caused a breakdown.
Based on the current price structure, UNI maintained a bearish outlook. If the token fails to reclaim $3.02, the decline could extend towards the next support zone. A recovery above this level could, however, improve confidence in the short term.
At press time, the average directional index (ADX) stood at 25.83. The reading indicates a strong directional trend and reinforces the prevailing bearish structure.
Why do traders become bearish?
Recent whale activity and broader market weakness appear to be weighing on sentiment.
According to crypto transaction tracker Onchain Lens, a whale sold 2.16 million UNI worth $6.61 million on May 29. The transaction resulted in a realized loss of $6.39 million.
This sale was not an isolated event. Several large UNI trades surfaced throughout May, indicating continued selling pressure from major holders.
At the same time, derivatives traders seemed to follow the general market trend.
According to CoinGlass, UNI’s Long/Short ratio fell to 0.91, indicating that bearish positions were outweighing bullish bets.
After the latest decline, $2.91 and $3.09 became the closest key liquidation levels.
The data showed that traders built long positions worth around $1.02 million around $2.91. In contrast, short positions near $3.09 totaled around $2.36 million.
The imbalance highlighted a stronger conviction among the bears. This also suggests that traders continue to position for further decline unless UNI reclaims lost support levels.
Final Summary
- Uniswap (UNI) fell 2.30% on June 1 and fell below the $3.02 support level.
- Whale sales and a long/short ratio of 0.91 reflected growing bearish sentiment.
