- Fibonacci levels suggest potential buying zones at $6.86 and $5.92.
- UNI faces strong short-term resistance near $8.6 despite recent bullish rallies.
- Falling Open Interest and long liquidations indicate possible short-term retracement before recovery.
Uniswap — UNI , has been on a strong run lately, drawing renewed attention from traders and long-term investors. After weeks of consolidation, the UNI token broke key resistance levels, signaling a possible trend reversal. The rally followed positive news, including the UNIfication proposal and a token buyback plan that boosted sentiment. Still, despite this bullish recovery, some warning signs have started to appear, suggesting that a deeper retracement could be around the corner.
UNI Faces a Potential Pullback Despite Bullish Momentum
UNI’s recent move above $8.6 helped the token reclaim a bullish market structure on the daily chart. The $6.88 level was once a short-term barrier but offered little resistance during the latest upswing. That breakout signaled growing optimism among traders, yet the On-Balance Volume (OBV) data revealed a more complex picture.
The buying volume that fueled the rally has now been met with stronger selling pressure near $9. This pattern often suggests that traders are taking profits after a strong run. Fibonacci retracement levels also hint at possible support zones near $6.86 and $5.92. A dip to these levels could create the next buying opportunity for patient investors. On lower timeframes, the OBV trend looks even more concerning.
The one-hour chart shows a steady decline in buying strength over the past two days. During this same period, the demand zone between $8.1 and $8.5 flipped from support to resistance. This shift confirms that bears have started to regain short-term control of the market.While the Money Flow Index (MFI ) indicates renewed buying activity, momentum alone may not be enough.
Funding Data Confirms Growing Bearish Pressure
Derivative data adds further evidence of weakening sentiment. Open Interest surged during the early stages of UNI’s rally, reflecting strong bullish conviction. However, as the price started to stall, Open Interest began to decline. Funding rates also slipped toward neutral and briefly turned negative, indicating that traders are closing long positions.
The recent increase in long liquidations suggests that leveraged traders are feeling the pressure. This combination of falling Open Interest and liquidations often signals the end of a short-term bullish cycle. For now, the bears seem to hold the upper hand, and a deeper retracement toward the $6.86 zone looks increasingly likely.
Long-term investors may see that area as a potential entry point if price action stabilizes. A solid rebound from Fibonacci support levels could mark the start of a new accumulation phase. Uniswap’s recent rally regained a bullish structure but faces strong selling pressure near $9.
