Uniswap (UNI) Plunges 70% as Open Interest Collapses—Where Is the Bottom?

▲ Uniswap (Source: Twitter)

Uniswap (UNI) has plunged nearly 70% in just weeks, falling from the $9 range to $2.80, signaling structural weakness alongside a collapse in futures open interest.

According to FXStreet on February 13 (local time), UNI recently dropped from the $9–$10 range to a low near $2.80. During the same period, futures open interest shrank by more than 60%, declining from over $750 million to a range of $220 million to $260 million. The simultaneous drop in price and open interest suggests that capital outflows and the liquidation of leveraged positions, rather than aggressive expansion of short positions, were the primary drivers.

This trend indicates that derivatives market participants have entered a “deleveraging” phase, reducing existing exposure rather than increasing new bets. The outlet noted that unless open interest recovers above $300 million to $350 million, the structure of the futures market is likely to remain weak.

From a technical perspective, overhead resistance remains clear. On the one-hour chart, UNI/USDT is consolidating within the $3.20–$3.60 range after facing resistance around $3.24. Although the price surged from $3.30 to $4.60 intraday the previous session, it quickly retraced, leaving a long upper wick. This confirms that the $4.00–$4.10 zone is acting as strong selling resistance.

In particular, $4.10 is viewed as a key technical confluence area, overlapping with the Fibonacci 0.618 retracement level, the declining volume-weighted average price (VWAP), and the upper boundary of the volume profile. Meanwhile, $3.86 corresponds to the Fibonacci 0.5 retracement level and serves as short-term resistance. Analysts say that without a sustained breakout above this range, it is difficult to discuss a structural trend reversal.

Ultimately, weakened open interest combined with clear technical resistance has kept UNI in a neutral-to-bearish consolidation phase. Until it decisively breaks and holds above $4.10, expectations are tilted more toward continued volatility and corrective price action rather than a trend reversal.

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