Uniswap Crypto (UNI) has recently faced a price correction, sliding 3.82% in 24 hours to trade around $8.94. This decline follows a strong week during which the UNI price rose nearly 20%. The total value of the cryptocurrency market also surpassed $3.7 trillion, leading to profit-taking and a temporary drop in prices for both Bitcoin and other cryptocurrencies, which had been rising just hours prior.
Bitcoin’s Retreat Triggers Altcoin Weakness
The broader market correction began with the Bitcoin price dropping 3.56% from its recent high of over $123,000, triggering $165 million in BTC liquidations.
As BTC dominance climbed to 63.48%, capital rotated out of mid-cap DeFi tokens like UNI. While Bitcoin pulled liquidity from the market, capital shifted from all prior gainers, such as UNI, XRP, ALGO, XLM, and SUI.
This pressure was amplified by derivatives-driven selling. The spot vs. perpetual ratio fell to 0.46, suggesting that UNI’s decline was mainly fueled by leveraged traders rather than long-term holders.
Strong Fundamentals Amid Short-Term Volatility
Although there has been a price drop, Uniswap displays strong fundamentals that suggest it could perform well in the long run, even if it struggles in the short term.
Uniswap has over $5.28 billion in Total Value Locked (TVL), according to DeFiLlama. In the last 30 days, DEX volumes reached $73.55 billion.
Layer 2 trading activity remains robust, with L2 volume surpassing $200B this year, indicating growing adoption.
The launch of Uniswap v4, which now captures over 20% of daily trading volume, underlines the network’s continued evolution. The new version has already attracted over 400,000 liquidity providers and more than 2,200 initialized hooks, according to Uniswap Foundation.
Furthermore, the TVL of the native chain of Uniswap Labs, Unichain, crossed $1.05 billion, with Uniswap accounting for $581 million.
Uniswap Crypto faces Key Resistance at $9.40
UNI has been consolidating between $8.60 and $9.40, with strong historical resistance in the $8.64–$9.80 zone (the 2024 ATH range). On July 14, Uniswap crypto briefly spiked to $9.42 before rejecting, signaling heavy selling pressure at that psychological level.
On-chain whale data adds another layer. 50.86% of UNI’s circulating supply is held by large wallets, making the price sensitive to whale movements. A recent $25.5M UNI withdrawal from Binance sparked speculation about potential repositioning rather than immediate selling. While this could reduce exchange supply, it didn’t prevent short-term profit-taking.
Still, analysts like Dead Cat Bounce believe the $9.00 confirmation level is crucial. If UNI establishes sustained value above this range, the next target would be $13, a level with minimal resistance due to the “low-volume pocket area.”
READ MORE: Stellar XLM Price Surged: 4 Reasons XRP’s Little Cousin May Crash
