Uniswap's UNI token fell nearly 9% on Wednesday, extending a 5% decline from the previous day, even as the protocol launched a new on-chain auction feature on Avalanche. The selloff came with a sharp drop in social engagement and a shift in derivatives positioning.
Avalanche auction launch
Uniswap introduced Continuous Clearing Auctions on Avalanche, a feature that lets projects conduct fully on-chain token sales and bootstrap initial liquidity through Uniswap v4. The protocol also rolled out TradePools on Robinhood, where users can deposit USDC, USDT, or ETH to earn yield.
Social and derivatives signals
Social dominance for UNI fell to 0.08% from 0.19% on Tuesday, while social volume dropped from 152 to 40. Open interest in UNI futures slipped more than 3% to $261.60 million over 24 hours. Long liquidations reached $2.88 million, compared with just $1,950 in short liquidations. The open-interest-weighted funding rate improved to 0.0016% from negative 0.0054% the day before, suggesting some repositioning among traders.
Technical levels to watch
UNI is testing its 100-day exponential moving average at $3.55, while trading below the 50-day EMA at $3.65 and the 200-day EMA at $3.93. The Relative Strength Index declined to 40, below the neutral midpoint of 50 but still above the oversold threshold of 30. The Moving Average Convergence Divergence indicator has fallen below its signal line, with an expanding bearish profile.
A decisive daily close below the 100-day EMA at $3.55 could extend the decline toward the 50% Fibonacci retracement level at $3.25, measured from $2.31 to $4.57. On the upside, resistance clusters at $3.89, the 23.6% Fibonacci retracement, and $3.93, the 200-day EMA.
CPI and the Fed
The July US Consumer Price Index report is scheduled for Wednesday at approximately 12:30 GMT. The data could influence the Federal Reserve's interest-rate decision and demand for risk assets like UNI.
Traders will be watching the CPI print and whether UNI can hold the $3.55 level into the close.
