On April 2, the Uniswap (UNI) price hit a monthly low following a sharp crash of 13.42% on a daily chart, sparking fear in the DeFi sector.
According to CoinMarketCap, the cryptocurrency is trading at around $3.12 with a market capitalization of $1.97 billion and a daily trading volume of $383.85 million.
There are various macroeconomic and technical factors that sparked a downfall in the cryptocurrency, including a swap incident that raised questions about the complexity of DeFi platforms.
The sharp downfall in the cryptocurrency is a classic liquidity sweep and forced liquidation event, which means that leveraged traders were likely forced out of their positions.
According to the analysis, this does not look like a solid bottom yet. As major trend indicators are suggesting a further bearish trend, there might be more downside, or at least a retest of lower levels is likely before any real reversal takes place.
(Source: TradingView)
It is best time ot wait for a bounce or retest before considering short positions, rather than chasing the price down at current levels. The price movement back into the range of $3.259 to $3.316 or up to $3.331 could offer a safer entry to short, provided a bearish rejection is confirmed.
For example, if the price soars to $3.316 and forms a bearish engulfing candle or a clear rejection pattern, that could be an important short entry. The first profit target would be $3.027, with the next at $2.946.
A stop-loss should be placed above the swing high of the relief rally to manage risk.
In the current downfall, UNI price dropped below the recent major consolidation zone of $3.40 to $3.50 after failing to hold major daily moving averages. According to TradingView, the major support is sitting at around $3.12m with a strong demand zone at $3.00 to $3.10. The major long-term support is at around $2.95 to $2.65.
In the upward trend, the cryptocurrency might face major resistance at around $3.30 to $3.40. According to daily indicators, there is a strong bearish momentum with RSI approaching oversold levels on the short-term timeframes.
In the latest post on X(formerly Twitter), Uniswap Labs has announced the deployment of v2, v3, and v4 protocols on ConsenSys-backed Linea zkEVM. This deployment will allow users to perform easy swaps, liquidity provision, and native staking yields with a very low cost through the web app, API, and wallets.
Linea is live across the Uniswap stack
→ Uniswap v2, v3, and v4
→ Uniswap Web App
→ Uniswap APIWith support in Uniswap Wallet rolling out now on iOS and Android pic.twitter.com/WugY0AjM3n
— Uniswap Labs
(@Uniswap) April 2, 2026
Apart from this, it also released its unaudited FY2025 financials, showing $85.8 million in total assets. This includes $49.9 million in cash and stablecoins, 15.1 UNI tokens, and 240 Ethereum. The foundation has a projected operational runway of 9 months, which means enough funding to continue operations into January 2027.
Last year, the foundation awarded $26 million in DeFi grants, which aimed at speeding up the adoption of Uniswap’s v4 upgrade and its Unichain network.
Also Read: Ripple Price Eyes $1.50 Rebound as Unified Treasury Goes Live
