Uniswap slides 10% to $3.5 as $3.9 support breaks

UNI fell 10.5% to $3.5 on Aug. 12, breaking the $3.9 support level that held for the past week and reaching a three-week low of $3.4. Trading volume surged 151.8% to $319 million, indicating rising activity on the sell side of the Ethereum-based decentralized exchange token.

According to CoinGlass data, over $3.25 million in long positions were liquidated during the drop, triggering panic among leveraged traders. UNI saw $137 million in futures outflows versus $106 million in inflows over the last 24 hours, pushing futures netflow down 328% to -$31 million — a clear sign of aggressive selling in the derivatives market.

Spot exchange activity confirms the bearish shift. CryptoQuant data shows exchange inflows surged to 5.1 million UNI while outflows rose to 3.9 million, lifting netflow to a monthly high of 1.2 million. While both buyers and sellers stepped into the market as the decline continued, sellers showed greater determination and overpowered buyers. Historically, such conditions have preceded weaker price action and further losses.

The breakdown in UNI comes as broader DeFi tokens face headwinds, with Bitcoin dominance holding elevated levels and capital rotating away from altcoins. Uniswap, the largest decentralized exchange on Ethereum with billions in cumulative trading volume since its 2018 launch, now faces the risk of a deeper correction. If selling pressure persists, UNI could lose the $3.4 support with $3.0 as the next key level — a critical psychological barrier for the decentralized exchange sector.

Technical indicators point to further downside

Uniswap's positive directional index continued to decline, falling from 26 to 19 at press time. At the same time, the ADX rose from 34 to 40 while the negative directional index moved from 14 to 13. When ADX and -DI are rising while +DI is falling, it reflects strengthening downside momentum and weakened bullish momentum.

The Relative Vigor Index further confirms this bearish structure, holding a downtrend for five consecutive days. Taken together, these indicators point toward more losses on UNI's price charts. If selling pressure continues from all directions, UNI is likely to lose the $3.4 support with $3.0 as the next key level.

For traders holding leveraged long positions, the liquidation cascade serves as a reminder of the risks inherent in DeFi token volatility. The $3.0 level represents a critical psychological barrier — a break below that could accelerate selling across the decentralized exchange sector, potentially dragging peer tokens lower as well. The coming days will determine whether buyers can defend the current range or whether the selloff extends further.

This article is for informational purposes only and does not constitute investment advice.