UNI breaks key support: bears target $3.00 as funding turns negative
Uniswap (UNI) is under renewed bearish pressure after losing a key trendline/horizontal support on the daily chart. At the time of writing, UNI trades around $3.44, down 7.5% in 24 hours.
Derivatives data is turning negative for UNI. The UNI OI-Weighted Funding Rate moved below zero to about -0.0061%, suggesting traders increasingly expect lower prices. The UNI long/short ratio fell to 0.7886, indicating more positioning in favor of shorts.
Spot flows also skew bearish. Over the last 24 hours, around $302K in UNI was transferred to exchanges, a common sign that some holders may be preparing to sell.
However, not all data is uniformly bearish. Nansen reported that the top 100 wallets increased their UNI holdings by 3.41%, while exchange reserves dropped 11.18% over the past week, consistent with withdrawals by larger/long-term holders.
Price-wise, analysts warn that if UNI loses the ascending trendline support it has held since April 12, the next downside area could be $3.00. The bearish outlook can be invalidated if UNI quickly recovers above the support zone.
Bearish
This is tagged bearish because multiple, trader-relevant signals for UNI align to the downside: negative OI-weighted funding (about -0.0061%) and a falling long/short ratio (0.7886) both point to increasing short bias, while spot inflows to exchanges (around $302K) suggest potential selling pressure.
The technical setup is also important: the article highlights UNI testing an ascending trendline support since April 12. Support breaks often trigger momentum moves as leveraged positions unwind and stop-loss orders get hit, which can accelerate price toward the next level—in this case, the $3.00 area.
That said, the presence of top-100 wallet accumulation and reduced exchange reserves introduces a counterbalance. In similar past patterns, such “whale accumulation vs. short-term pressure” situations can produce sharp sell-offs followed by stabilisation or range trading once forced selling exhausts.
Short term, expect elevated volatility around the $3.44 area and higher probability of a move toward $3.00 if UNI fails to reclaim the broken support quickly. Long term, if UNI can absorb sell pressure (e.g., continued reserve withdrawals) while price holds above the next demand zone, the bearish impulse may fade. But until UNI shows recovery, derivatives sentiment remains the dominant driver for bears.