Uniswap Price Plunges as Bearish Signals Mount

Uniswap (UNI) is facing intense selling pressure, down nearly 6% on Wednesday after a 5% drop the previous day. Despite launching new features such as Continuous Clearing Auctions on Avalanche and offering yield on USDC, USDT, or ETH deposits, retail support for UNI is waning. Open Interest and Social Dominance have declined sharply, indicating risk-off sentiment among traders.

The launch of Continuous Clearing Auctions on Avalanche enables teams to run on-chain token auctions and bootstrap liquidity, reducing friction in interoperability. However, this has not translated into increased retail interest for UNI, with Santiment data showing a sharp decline in Social Dominance and volume.

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

From a technical perspective, UNI is testing its 100-day Exponential Moving Average (EMA) at $3.55. A decisive close below this level could target the 50% retracement, measured from $2.31 to $4.57, at $3.25.