Market watches key demand zones after latest pullback
Uniswap’s native token continued its downward drift this week, falling roughly 5% over the past 24 hours to trade near $6.29. The decline reflects ongoing uncertainty in the altcoin market, where traders are weighing macro pressures against fading technical momentum. UNI’s latest move also reinforces a broader trend of lower highs forming since late summer.
Market data shows the token slipping beneath a recently defended range, signaling weakening bullish conviction. The price has now returned to a major support block between $6.00 and $5.50, an area that previously sparked strong accumulation. Traders note that, if this floor fails, deeper drawdowns toward $5.10 could follow.
The pullback comes after UNI rejected a significant supply zone around $7.50, an area highlighted repeatedly on the daily chart. The failure to reclaim this overhead resistance confirms a sustained bearish market structure. A visible trendline break dating back to April has further intensified downside expectations.
“Momentum has been slowing for weeks, and buyers have not shown willingness to chase rallies,” said BitXJournal crypto analyst. “Unless UNI can close back above the mid-$7 range, upside potential appears limited in the short term.”
Volume trends also support caution. Trading activity has thinned during selloffs rather than spiking aggressively, suggesting controlled distribution rather than panic. However, technical specialists caution that muted activity may precede stronger volatility if liquidity shifts suddenly.
BitXJournal market structure researcher added, “The chart reflects clear breaks of structure, and price continues respecting lower supply zones. Buyers need a confirmed higher low before sentiment can stabilize.”
Still, some analysts argue that the current decline may be part of a broader corrective phase rather than a cyclical peak. The token remains well above its early-year lows, and decentralized finance participation has not diminished significantly. Should UNI hold current levels and form consolidation, mid-term recovery remains possible.
Traders are watching whether bulls defend the $6 region, as losing that level could invalidate recent accumulation zones and accelerate downside. Conversely, a decisive reclaim of previous support turned resistance near $6.80 may shift momentum back toward buyers.
For now, market participants emphasize measured positioning and technical confirmation. UNI’s next directional move will determine whether this retreat becomes opportunity—or warning.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.