UNI is retesting the $3.90–$4.20 zone that has underpinned its price since the July 30 breakout, with whale orders and derivatives positioning both leaning bullish despite two days of losses.
Uniswap (UNI) has dropped for two consecutive days, pulling the token back into a support band between $3.90 and $4.20. That zone had already preceded several bullish advances before the breakout on July 30.
The pullback comes even as the Uniswap platform keeps growing, which frames the retracement as a short-term realignment before a fresh positioning move, most likely at the support zone.
Whale orders build as the network expands
Uniswap recently rolled out Uniswap Protocol and UniswapX across its Web App, Wallet, and API, widening access to its trading infrastructure. The market has responded with improving on-chain activity.
According to Average Order Size data, whale orders on the network are increasing near current UNI prices instead of shrinking after the breakout. Many investors see the support zone as a potential reversal point, and derivatives traders lean the same way: long positions make up 56% of total Open Interest on the network.
Funding rates have also stayed positive for several weeks, showing traders are still willing to pay a premium to hold long positions. That can sometimes signal an overcrowded trade, but it also points to continued confidence that the broader trend remains intact.
Can Uniswap hold its breakout?
UNI's technical picture now hinges on the $3.90–$4.20 zone, which could become the foundation for the token's anticipated reversal. If buyers defend it, the pullback could give way to another bullish push; a decisive break below the zone would weaken the bullish structure and suggest the July breakout has lost momentum.
Uniswap's price is still trading above all key exponential moving averages, affirming the long-term bullish bias.
Source: AMBCrypto
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