UniSwap Approaches $7.50 Resistance as Long Positions Hit 60% Risk

UniSwap (UNI) is nearing the $7.50 resistance level as long positions in the derivatives market have risen to 60%. With a significant concentration of bets on upward movement, the risk of liquidations increases should prices move contrary to expectations.

AMBCrypto reported on May 15 that UNI's open interest has surged to $51 million (approximately KRW 674.8 billion) over the past 24 hours. Open interest refers to the total value of unsettled futures contracts. Long positions now account for 60% of the market, indicating a strong bullish bias in derivatives markets. However, if prices decline, these longs may be liquidated to cut losses or due to forced margin calls.

The rise in open interest suggests increased exposure to UNI price movements through derivatives. Nevertheless, open interest alone does not determine price direction; it should be analyzed alongside spot market trends. In the spot market, buying pressure and retail investor activity have both increased. AMBCrypto noted that rising spot buying could reduce reliance on leveraged positions for price movement.

Technically, UNI is trading above key moving averages. The $7.50 level has been identified as the next major resistance, with over $376 million (approximately KRW 506.2 billion) in liquidity concentrated there. Liquidity refers to the volume of orders and positions clustered at specific price levels, which can amplify trading volume and volatility when prices approach that range.

AMBCrypto suggests that if buying pressure absorbs selling pressure alongside rising spot trading volume, a breakout above $7.50 could strengthen momentum. Conversely, if prices retreat from $7.50, liquidation of leveraged long positions may drive the price toward nearby support levels. Higher long position concentration increases sell-side pressure during downturns.

The key takeaway is that $7.50 isn't a fixed target but a resistance level where spot buying and derivative positioning present both risks and supports simultaneously. UNI's next move will depend on whether it breaks above $7.50, spot trading volume, and the scale of long position liquidations.