Uniswap Coin is attempting to stabilize after a steep market downturn that pushed the token below the critical $8 zone, erasing weeks of prior gains.
Following a prolonged period of sideways movement and bullish rallies through 2024, the coin’s structure has weakened, slipping beneath key support areas and triggering a wave of liquidations. The recent bounce near $6 suggests that selling pressure may be easing as buyers cautiously re-enter the market.
Open Interest Contraction Signals Market Reset
At the time of writing, UNI/USD was trading at $6.25, posting a weekly decline of 5.01%. The long-term chart reflects a decisive loss of upward momentum after failing to sustain the $8–$10 consolidation zone, leading to a downward acceleration. The intense volatility that followed was met with a significant reduction in speculative leverage, marking a critical phase of deleveraging.
Source: Open Interest
According to derivatives data, aggregated open interest has declined sharply from over 400 million to approximately 151 million. This contraction underscores reduced speculative participation, often linked to liquidation events and traders exiting the market after heavy volatility.
A lower open interest environment typically precedes calmer conditions, with fewer forced liquidations and more organic price movement. While this suggests the market is resetting, buyers will need to show consistent accumulation before confirming any shift in momentum.
Market Data Reflects Stabilization Phase
According to BraveNewCoin, Uniswap trades at $6.03, reflecting a 2.11% intraday decline, with a market capitalization of $3.62 billion and 24-hour trading volume of $213.6 million. The circulating supply stands at 600.48 million tokens, ranking the asset 43rd globally.
The muted volume recovery suggests that market participants are engaging cautiously following the latest decline, mirroring the sentiment across the broader DeFi ecosystem, where liquidity has tightened amid uncertain risk appetite.
Source: BraveNewCoin
The token remains central to the the token decentralized exchange, serving as a governance token for protocol upgrades and treasury management. While fundamental demand for the token remains tied to ecosystem participation, technical sentiment currently dominates short-term direction, with traders closely watching reaction levels between $6.00 and $7.00 for clues on trend continuation.
Technical Indicators Point to Rebound Potential Toward $9
On the other hand, UNI/USDT was observed trading around $6.30, marking an intraday gain of 4.58% as buyers defended the $6 zone. The Bollinger Bands show the lower band near $5.38, the basis line at $7.19, and the upper band positioned around $9.00, providing a clear technical framework for near-term movement. The coin’s recent rebound from the lower band suggests a potential bottoming process, with the next test likely centered on the $7.19 midline.
Source: TradingView
Momentum indicators support this cautious optimism. The Relative Strength Index (RSI) currently reads 37.88, just above its moving average of 37.22, signaling relief from oversold territory but still below the neutral 50 mark. This indicates that while sellers are losing momentum, full bullish confirmation is not yet present.
