Uniswap drops 11% – Can UNI bulls defend THIS support?

Uniswap [UNI] fell 11.08% over 24 hours as last week’s rally gave way to a broader crypto market pullback.

UNI moved toward $9.43, while the total crypto market capitalization declined 2.67%. Bitcoin also fell 2.6% over the same period.

The reversal followed UNI’s sharp rise the previous week, leaving recent buyers exposed to profit-taking. Meanwhile, the Fear and Greed Index retreated from 81 to 73.

Trading cooled too. UNI’s 24-hour Spot Volume fell 19.3% to $1.73 billion.

Did UNI’s exchange reserves ease selling?

Despite the correction, Uniswap’s [UNI] Exchange Reserve fell 10.65% to around $1.05 billion over 24 hours, according to CryptoQuant.

That meant the dollar value of UNI held in tracked exchange wallets declined. However, UNI’s falling price could also have contributed to the lower reading.

At the same time, Spot Taker CVD remained buyer-dominant, suggesting aggressive Spot buyers continued to meet selling pressure.

The Spot Volume Bubble Map still indicated overheated conditions after the earlier surge. Cooling activity could ease that pressure, although it might also slow any immediate recovery.

So, Spot buyers remained active. The reserve reading alone could not show how many UNI tokens had left exchanges.

Top traders keep their long exposure

The positioning among Binance top traders remained heavily tilted toward longs despite UNI’s double-digit daily price correction.

As per CoinGlass-tracked data, the long accounts accounted for 67.44% of top traders, while the short accounts represented 32.56%. The positioning resulted in a Long/Short Ratio of 2.07.

Therefore, larger market participants preserved their long bias as UNI corrected from the previous week’s sharp rise.

More importantly, this positioning aligned with the buyer-dominant Spot Taker CVD and the 10.65% exchange reserve decline.

Even so, the heavy long positioning also introduced volatility sensitivity in case UNI lost its immediate support, forcing leveraged traders to unwind.

However, for now, the spot demand and minimized exchange supply provided support as the top traders continued favoring long exposure.

Eventually, the next price reaction near the support could determine whether their positioning remained aligned with UNI’s broader structure.

Can $9 support UNI’s bullish structure?

On 24-hour timeframe chart, Uniswap’s retreat followed a liquidity grab above the $10.23 level, where the token briefly extended before bears forced a sharp reversal.

Notably, UNI pushed towards the crucial support area surrounding the $9.01 price level, instead of extending lower immediately.

At the time of this analysis, UNI market price traded around $9.38, keeping the key support region intact after the liquidity-driven retrace.

Notably, the DMI indicator remained strongly bullish despite the correction, with the +DI signal reaching 40.12 against -DI at 4.32.

Additionally, the ADX indicator stood at 60.55, reinforcing a strong directional strength behind the broader trend structure.

Overall, preserving the $9.01 support could allow UNI to stabilize before attempting another move toward the $10.23 resistance.

Losing this support zone, however, could expose Uniswap to a deeper retracement from its recent price rally.

Final Summary

• UNI retraced 11.08%, but shrinking exchange reserves could limit additional sell-side pressure.

• UNI’s bullish DMI remained intact despite the correction, keeping buyers in control above crucial support.