On the 1st of June, Uniswap [UNI] declined 2.30%, breaking below a key support level that had held since February. The move came as bearish sentiment intensified across the market, while traders and investors remained actively engaged with the token.
According to CoinMarketCap data, UNI fell to $2.97 over the past 24 hours.
During the same period, Trading Volume surged 35% to $110.95 million, signaling increased market participation despite the ongoing decline.
Has UNI lost a critical support level?
According to the TradingView daily chart, UNI remained in a downtrend and continued trading below the 200-day Exponential Moving Average (EMA).
The latest decline pushed UNI below the $3.02 support level, which it had defended since the 5th of February. The token had spent the previous four days consolidating in a tight range around that level before sellers forced a breakdown.
Based on the current price structure, UNI maintained a bearish outlook. If the token failed to reclaim $3.02, the decline could extend toward the next support zone. A recovery above that level, however, could improve short-term sentiment.
At press time, the Average Directional Index (ADX) stood at 25.83. The reading indicated a strong directional trend and reinforced the prevailing bearish structure.
Why are traders turning bearish?
Recent whale activity and broader market weakness appeared to weigh on sentiment.
According to crypto transaction tracker Onchain Lens, a whale sold 2.16 million UNI worth $6.61 million on the 29th of May. The transaction resulted in a realized loss of $6.39 million.
That sale was not an isolated event. Several large UNI transactions surfaced throughout May, pointing to continued selling pressure from major holders.
At the same time, derivatives traders appeared to be following the broader market trend.
According to CoinGlass, UNI’s Long/Short Ratio dropped to 0.91, indicating that bearish positions outweighed bullish bets.
Following the latest decline, $2.91 and $3.09 emerged as the nearest key liquidation levels.
Data showed that traders had built roughly $1.02 million worth of long positions around $2.91. By contrast, short positions near $3.09 totaled approximately $2.36 million.
The imbalance highlighted a stronger conviction among bears. It also suggested that traders continued positioning for further downside unless UNI reclaimed lost support levels.
Final Summary
- Uniswap [UNI] fell 2.30% on the 1st of June and slipped below the $3.02 support level.
- Whale selling and a 0.91 Long/Short Ratio reflected growing bearish sentiment.
