Uniswap [UNI] experienced significant downside pressure during a broader market sell-off, failing to defend the $9 support level and declining to a low of $8.00. At the time of reporting, UNI traded around $8.19, representing a 9.16% daily decline with trading volume surging 39% as sell-side activity intensified.
The price drop triggered substantial liquidations among leveraged traders. Over the preceding 24 hours, more than $5.7 million worth of long positions were liquidated, according to CoinGlass data. The liquidations amplified selling pressure on exchanges, with traders panic-closing positions as risk mounted.
Futures market activity reflected the exodus. Uniswap recorded $312 million in futures outflows compared to $251 million in inflows over the same period, resulting in a net outflow of $61 million. This negative netflow indicated that traders were exiting the market in greater numbers than entering it.
Technical indicators pointed to strengthening bearish momentum. The Moving Average Convergence Divergence (MACD) declined sharply to 0.45, while the Stochastic Momentum Index (SMI) formed a bearish crossover and moved deeper into negative territory. With both indicators trending downward, downside momentum appeared likely to persist.
However, spot market activity offered some counterbalance to the bearish sentiment. Spot netflow declined to -$8.89 million as the market fell, suggesting that some buyers were accumulating UNI off-exchange during the dip. Historically, strong buying in the spot market can absorb selling pressure from derivatives and provide price support.
