The impressive rally in Uniswap faced friction on Thursday as the token retreated by 2% after failing to maintain traction above the key $6.00 resistance level. The pull back follows a extended upward momentum starting August 15, during which UNI surged over 80% to reach a fresh annual high of $6.38 on Wednesday. As profit booking kicked in around the overhead barrier, Uniswap was trading near $5.73 during market hours.
Derivatives Wipeout and Falling Open Interest
Data from analytics provider CoinGlass highlights a shift in market positioning. Uniswap Open Interest (OI) dropped 12% over the last 24 hours to stand at $480.85 million. The decline points to trader liquidation and a reduction in position notional value accompanying the spot price pullback.
Total liquidations reached $2.85 million across exchanges in the past 24 hours, heavily dominated by long liquidations amounting to $2.15 million. Despite this derivative unwinding, the OI-weighted funding rate remains positive at 0.0094%. This indicates that leverage traders are still paying a premium to hold long positions in anticipation of a potential trend continuation.
Golden Cross Support and Key Technical Targets
From a chart perspective, Uniswap retains a constructive medium-term structure. The 50-day Exponential Moving Average (EMA) at $4.15 recently crossed above the 200-day EMA at $3.98, confirming a Golden Cross setup. This technical milestone typically validates an ongoing uptrend reversal.
Momentum indicators show signs of short-term exhaustion. The Relative Strength Index (RSI) stands at 74 on the daily timeframe, flagging overbought conditions that often precede a temporary consolidation. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line. If buyers push UNI past the R1 Pivot Point at $6.09, the next resistance targets lie at $6.95 and $8.41. On the downside, immediate support rests at the broken trendline near $4.74, with stronger demand likely waiting at the 50-day EMA of $4.15.
Altcoin Performance and Sector Divergence
The broader altcoin space displays mixed performance. Ripple (XRP) is attempting to consolidate within a defined support zone, whereas Stellar (XLM) has slipped below a cluster of moving averages. Conversely, Layer-2 scaling solution Arbitrum and Pyth Network recorded double-digit percentage gains over the past 24 hours, leading the top gainers list.
Bitcoin Momentum and Macro Correlation
Bitcoin continues to trade above the $77,000 mark, with live market figures showing BTC at $77,649. Notably, Bitcoin's 90-day correlation with Gold has climbed to nearly 50%. A report from analytics firm Glassnode indicates that Bitcoin faces a battle between a solid accumulation zone beneath current price levels and a dense concentration of overhead supply overhead.
