Uniswap's Retail Strength Wanes Amidst Bearish Signals
Uniswap (UNI) is experiencing intense selling pressure as it extends losses for the second consecutive day. The asset has dropped nearly 6% on Wednesday, following a 5% decline the previous day.
The launch of Continuous Clearing Auctions on Avalanche aims to reduce friction in interoperability, but this hasn't been enough to boost retail interest in UNI. In fact, data from Santiment shows a sharp decline in social dominance and volume, down to 0.08% and 40 respectively, from 0.19% and 152.
Additionally, CoinGlass data reveals that the UNI futures Open Interest has decreased by over 5% in the last 24 hours to $261.60 million, indicating a contraction in active contracts. Long liquidation of $2.88 million outpaced short liquidation of $1,950 during this time period.
The technical outlook for UNI is bearish, with the Relative Strength Index (RSI) at 40 edging toward bearish territory and the Moving Average Convergence Divergence (MACD) falling below its signal line. A decisive close below the 100-day EMA at $3.55 could target the 50% retracement level at $3.25.