UNI Plunges to Lower Bollinger Band After Security Exploit Sparks $15M Trading Volume Surge

Quick Take

• UNI trading at $5.60 (down 4.1% in 24h)
• Security exploit concerns targeting V3 functions drive significant outflows
• Price testing lower Bollinger Band support at $5.62
• Following Bitcoin’s decline below $111,000 amid broader crypto weakness

Market Events Driving Uniswap Price Movement

The primary catalyst behind UNI price weakness stems from security exploit concerns that emerged on October 30, 2025, specifically targeting Uniswap’s V3 functionality. This security incident prompted significant market outflows as investors grew anxious about the platform’s vulnerability, directly impacting trader confidence in the protocol’s safety measures.

The exploit concerns forced Uniswap to initiate comprehensive reviews of its security and audit procedures, signaling the seriousness of the situation. Market participants responded swiftly, with trading volume surging to $15.8 million on Binance spot markets as investors repositioned their holdings.

Compounding UNI’s decline, Bitcoin’s drop below $111,000 during the same period created additional downward pressure across the cryptocurrency sector. The broader market selloff was attributed to escalating U.S.-China trade tensions, which drove investors toward traditional safe-haven assets like gold, further reducing appetite for risk assets including altcoins.

UNI Technical Analysis: Testing Critical Support Zone

Price Action Context

UNI price action reveals significant technical deterioration, with the token trading below all major moving averages. The current price of $5.60 sits substantially below the 20-day SMA at $6.17 and even further from the 50-day SMA at $7.27, indicating sustained bearish momentum.

The Bollinger Band position shows UNI at -0.0199 %B, placing it virtually at the lower band support of $5.62. This positioning suggests the token is potentially oversold in the near term, though downside momentum remains strong given the security concerns.

Key Technical Indicators

The RSI reading of 34.28 indicates UNI has moved into oversold territory without reaching extreme levels, suggesting further downside remains possible. However, the MACD histogram shows a slight bullish divergence at 0.0118, indicating selling pressure may be beginning to moderate.

Stochastic indicators present a mixed picture, with %K at 1.46 showing extreme oversold conditions while %D at 13.50 suggests some stabilization potential. The daily ATR of $0.48 reflects elevated volatility, providing both risk and opportunity for active traders.

Critical Price Levels for Uniswap Traders

Immediate Levels (24-48 hours)

• Resistance: $5.94 (7-day SMA and recent high)
• Support: $5.58 (24-hour low and immediate technical floor)

Breakout/Breakdown Scenarios

A break below $5.58 support could trigger accelerated selling toward the $5.00 psychological level, with strong support not appearing until the $4.78 52-week low. Conversely, a recovery above $5.94 would need to be sustained to challenge the $6.17 20-day moving average, where more substantial resistance awaits.

UNI Correlation Analysis

Bitcoin correlation has intensified during this selloff, with UNI following the broader cryptocurrency market lower as Bitcoin tested support near $110,000. This correlation suggests UNI price recovery will likely require Bitcoin to stabilize and begin recovering.

Traditional market impacts appear secondary, though the flight to gold amid trade tensions has reduced overall risk appetite, indirectly pressuring cryptocurrency valuations including Uniswap.

Trading Outlook: Uniswap Near-Term Prospects

Bullish Case

Recovery requires resolution of security concerns through successful audits and enhanced security measures. Technical bounce potential exists from current oversold levels, particularly if Bitcoin finds support. Target resistance levels include $5.94 initially, followed by $6.17 if momentum builds.

Bearish Case

Continued security uncertainties could drive additional outflows, with Bitcoin weakness providing additional downside pressure. Key risk levels include a break below $5.58 immediate support, which could accelerate selling toward $5.00 and potentially the $4.78 yearly low.

Risk Management

Traders should consider tight stop-losses below $5.50 given the security overhang, while position sizing should account for elevated volatility. Any recovery trades require confirmation above $5.94 to signal potential trend reversal from current oversold conditions.

Image source: Shutterstock