Uniswap token UNI continued its downward trend on June 1st, falling 2.3% in a single day and breaking below the $3.02 support level that had been maintained since February. Despite the price decline, market trading did not cool down; instead, it showed signs of increased capital participation.
Trading volume increased but prices declined.
According to CoinMarketCap data, UNI fell to $2.97 in the past 24 hours. Trading volume during the same period rose to $110.95 million, a 35% increase from the previous day.
A price drop coupled with increased trading volume usually indicates growing divergence in opinion. Looking at the current trend, UNI remains in a downward range, and short-term sentiment has not improved significantly.
Large on-chain sell orders exert pressure
Part of the bearish sentiment in the market stems from large-scale selling by major holding addresses. Onchain Lens, an on-chain tracking account, disclosed that on May 29, a whale sold 2.16 million UNI tokens, worth approximately $6.61 million.
The realized loss from this transaction is approximately $6.39 million. The report also mentioned that several large UNI transfers and sales occurred in the market during May, indicating that some large holders are still exerting selling pressure.
Derivative positions are biased towards short positions.
CoinGlass data shows that UNI's long/short ratio has dropped to 0.91, indicating that short positions outnumber long positions. According to the data in the article, there are approximately $1.02 million in long positions around $2.91, while short positions around $3.09 are approximately $2.36 million.
This pattern suggests that traders are currently more inclined to bet on UNI to continue its weakness. If the price fails to regain $3.02, selling pressure is likely to persist.
From a technical perspective, UNI is still trading below its 200-day exponential moving average, and the trend has not yet reversed. The article also mentions that the average Directional Movement Index (ADX) is 25.83, indicating that the current directional trend remains relatively clear.
