Uniswap prices plunged 20%, and after breaking, the target was aimed at US$3

Uniswap prices fell below US$3.20, with downward pressure compounded by head-and-shoulder patterns and capital outflows.

Uniswap (UNI) prices have fallen nearly 20% to US$3.23 in the past seven days. The break in the head-and-shoulder pattern, weak capital inflows and successive long liquidations have together intensified selling pressure.

Overview

Uniswap prices fell nearly 20% in seven days, trading at around $3.23 on August 14. Daily prices have fallen back to the 38.2% Fibonacci retracement level of $3.19. The Aroon indicator and capital flow indicator on the 4-hour chart show that the seller is still firmly in control of the situation. 3.45 Clearing clusters between the dollar and $3.65 could limit any short-term rebound.

Uniswap prices continued their decline, approaching US$3.20

According to cryptocurrency news data, Uniswap (UNI) prices fell to US$3.17 on August 14, and then slightly rebounded to US$3.23. The token fell nearly 7% on the day and nearly 20% on the seventh day, continuing a downward trend since a high of around $4.59 in early August. Daily charts show that UNI has almost given up most of its gains since its June 11 low of $2.32. Sellers have pushed prices below the 78.6%, 61.8%, and 50% Fibonacci retracement levels (at $4.10,$3.72 and $3.46 respectively).

UNI is currently testing the 38.2% retracement level of $3.19. This level is important because it is close to the lower end of the token's March-May trading range, after buyers had intervened in the $3.10 to $3.20 range. A daily close below $3.19 would weaken that support and expose the 23.6% Fibonacci level of $2.86. Continued selling could push prices further towards the psychological level of $3.00, or the June low of $2.32.

The latest daily candle chart also shows few signs that buyers are absorbing the decline. UNI opened close to $3.48, briefly touching $3.53 before falling to $3.17, putting the price near the day's low. The long-short power indicator is-0.791, the weakest reading on the daily chart displayed. Deep negative values indicate that sellers are pushing prices further below short-term moving averages, rather than just reacting to a temporary correction. Daily random RSI readings of 0.00 and 0.54 indicate that UNI is in a deeply oversold area. Such readings may signal a rebound, but oversold conditions alone do not confirm that the downtrend is over, especially as prices continue to hit lower peaks and lower troughs.

Head and shoulder pattern confirms bearish reversal

Cryptocurrency analyst Crypto With Gopal posted on platform X on August 12 that a head-and-shoulder pattern was identified on UNI's 4-hour chart. According to the analyst, the right shoulder failed at about $4.20, before the price fell below the pattern's neckline near $3.90. The pattern starts with the left shoulder (under $4.00), followed by the head (close to $4.60) and the lower right shoulder (approximately $4.20). Prices then fell below the rising neckline that had supported gains in July. Crypto With Gopal has set a downside target for this form at around $3.00. Since the post was posted, UNI has dropped from about $3.53 to about $3.23, leaving the target price within 7% of the current price.

The 4-hour chart supports a bearish pattern. After peaking on August 1, UNI formed a series of lower highs, initially falling below $4.00 and then falling below $3.80,$3.60 and $3.45. On August 14, a brief attempt to stabilize near $3.50 failed, followed by another sharp decline. On the 4-hour time frame, Aroon's downside indicator was 92.86%, while Aroon's upside indicator was 0%. This divergence suggests that recent lows are forming much more frequently than recent highs, keeping the short-term trend downward. The capital flow indicator is also negative, at-0.28. The reading suggests that trading volume was concentrated as UNI closed near the lower end of its candle chart, a sign of continued outflows of funds.

UNI liquidation may increase volatility

CoinGlass's three-day liquidation heat chart shows UNI's decline accelerates as prices move through multiple areas containing leveraged positions. The token fell from above $3.80 on August 11 to nearly $3.20 on August 14, falling sharply around $3.60,$3.45 and $3.35. Heat maps show that liquidity, previously concentrated around $3.45, was cleared out in the recent sell-off. UNI briefly fell below $3.20, then stabilized around $3.23, and the clearing band near this position appears to be smaller than the cluster left above the market. The larger concentration area remains between about $3.45 and $3.55, followed by a brighter band around $3.60 and $3.65. As prices may move towards areas that contain large amounts of leveraged positions, a rebound into these areas may trigger short liquidations and lead to a faster recovery. However, the same clusters can also serve as resistance levels. Traders who buy before the fall may take advantage of the price returning to $3.45 or $3.60 to reduce exposure, thereby increasing spot supply when leveraged shorts are under pressure.

Another large liquidity band is located around US$3.68, while additional concentration areas extend to US$3.80. UNI needs to recover its Fibonacci midpoint of $3.45 and stay above $3.72 before it can begin repairing the damage visible on the daily chart. Below current prices, clearing liquidity is thin, although a smaller band appears between $3.10 and $3.20. A clean break through the area could move it faster towards the $3.00 target set in the head-and-shoulder pattern.

Key UNI prices that traders are concerned about

The current direct support range lies between a daily low of $3.17 and a 38.2% Fibonacci level of $3.19. Holding the area could allow UNI to attempt to oversell a rebound to $3.40 to $3.45, the first significant clearing cluster and former support level. If it exceeds $3.45, the focus will shift to $3.60 to $3.65. Recovering this range will clear the intensive liquidation level, but the 61.8% retracement level of $3.72 will still be a stronger technical obstacle. For the bullish situation to gain credibility, UNI needs to close above $3.72 and regain the neckline near $3.90. Afterwards, a Fibonacci level of $4.10 and a failed right shoulder near $4.20 will become the next resistance point.

As long as UNI trades below $3.45, the bearish situation remains in effect. A daily close below $3.17 would open the way to $3.00 and $2.86, while a loss of $2.86 would expose the basis of a June rally between $2.32 and $2.40. For U.S. investors, UNI is still available through cryptocurrency trading platforms rather than U.S. listed spot exchange-traded funds, making the token more dependent on direct spot demand and offshore derivative liquidity. As a result, when leveraged selling accelerates, the chart does not have an ETF fund flow buffer like Bitcoin or Ethereum.