Uniswap’s UNI token faced a sharp reversal on Thursday, erasing earlier gains and slipping below a key support level at $6.22. The move signals growing bearish momentum as technical levels come under pressure amid volatile market conditions.
Intraday Rally Rejected at $6.44
UNI began the day with bullish momentum, rising to an intraday high of $6.44. However, the rally was short-lived. Heavy selling emerged around $6.44, triggering a sharp sell-off that sent the token to an intraday low of $6.20.
The rejection at $6.44 marked a 3.1% swing from peak to trough within hours, highlighting increased volatility and lack of buyer follow-through.
High Volume Breakdown Confirms Bearish Shift
At the moment of breakdown, UNI recorded a volume surge exceeding 244,000, validating the shift in market sentiment. This volume spike coincided with a steep decline to $6.31, indicating strong seller dominance.
Following the drop, UNI attempted several recoveries, but each rebound was weaker than the last. Lower highs at $6.31, $6.30, and $6.29 confirmed a bearish market structure, with sellers maintaining control throughout the session.
Key Support Zone Under Threat
The $6.22–$6.25 support range — previously a solid consolidation zone — is now under direct threat. UNI’s decline to $6.20 late in the session signals a potential breakdown if no near-term reversal occurs.
Technical analysts now view $6.20 as the last major support before further downside opens, potentially targeting the next psychological levels around $6.00 or $5.85.
Market Sentiment Weakens Amid Broader Uncertainty
The reversal in UNI coincides with increased risk aversion in broader crypto and equity markets. Uncertainty surrounding monetary policy, inflation signals, and geopolitical tensions is fueling cautious sentiment among traders.
UNI’s failure to sustain above $6.35 — now confirmed as short-term resistance — underscores the shift from bullish optimism to defensive positioning.
As of the latest update, UNI trades around $6.20, with momentum indicators flashing bearish. Traders will closely watch the next sessions for any stabilization above key support, or confirmation of a deeper correction.