Uniswap Price Plunges Amid Waning Retail Support

Uniswap's (UNI) price has been under intense selling pressure this week, dropping nearly 6% on Wednesday after a 5% decline the previous day. The cryptocurrency continues to roll out new features, including Continuous Clearing Auctions on Avalanche, which will allow developers to deploy fully on-chain token auctions and tap into bootstrap liquidity on Uniswap v4.

Despite these efforts, retail support for UNI is dwindling, with declining Open Interest and Social Dominance implying risk-off sentiment among traders. According to Santiment data, social dominance dropped to 0.08% and volume fell to 40 on Tuesday from 0.19% and 152, indicating a sharp decline in retail buzz.

Corroborating this trend, CoinGlass data shows that UNI futures Open Interest is down over 5% in the last 24 hours to $261.60 million, suggesting a contraction in the notional value of active contracts. Long liquidation also outpaced short liquidation in the same time period, pointing to a biased wipeout of bullish positions.

The technical outlook for UNI is bearish, with the price testing its 100-day Exponential Moving Average (EMA) at $3.55. Momentum aligns with this defensive tone, with the Relative Strength Index (RSI) at 40 edging toward bearish territory and the Moving Average Convergence Divergence (MACD) falling below its signal line with an expanding bearish profile.