Uniswap [UNI] has attracted significant interest recently following the activation of a TD Sequential buy signal on its 4-hour chart, sparking hope for a potential recovery.
Currently trading at $13.17, showing an 11.89% decrease in the last 24 hours, UNI is now at a pivotal point.
The $13.20 support level holds critical importance for the token to stabilize and reverse its recent downward trend. Traders are closely monitoring whether this level can act as a catalyst for UNI’s resurgence.
Analysis of UNI Price Movement: Will the Support Levels Remain Intact?
UNI has encountered significant selling pressure, resulting in a sharp drop from $15.32 to its current price range.
Fibonacci retracement levels have identified resistance at $15.90 and $17.06, which UNI must surpass to regain its upward trajectory.
However, the parabolic SAR, currently at $14.90, indicates a continuation of the bearish trend unless the $13.20 support level proves to be resilient.
A breach of this crucial zone could lead to further declines towards $12.88, sparking concerns among investors about the token’s stability.
Moderate Optimism Prevails
On-chain metrics for UNI offer a mixed outlook, with minor improvements in network activity providing a sense of cautious optimism.
Active addresses have seen a 1.12% uptick in the last 24 hours, suggesting a slight increase in user participation.
Furthermore, transaction counts have grown by 1.01%, indicating a marginal rise in network utilization. However, these increments, while positive, might not signify a robust shift in sentiment.
While the fundamentals exhibit resilience to some extent, they might not be potent enough to usher in a definitive recovery at this stage.
Reduction in Exchange Reserves Indicates…
UNI’s exchange reserves have fallen by 0.75% over the past day, standing at 68.63 million tokens at present. This decline hints at reduced selling pressure due to a lower supply available for trading.
Nevertheless, this also reflects cautious sentiment in the market, with holders adopting a wait-and-watch approach instead of actively engaging in buying or selling.
Therefore, while this shift is mildly positive, its ability to sustain a lasting bullish momentum remains uncertain.
Uncertainty Echoed in Liquidation Data
Examining liquidation data provides further insights into market sentiment, with long liquidations amounting to $397.89K, substantially outweighing short liquidations at $96.73K.
This discrepancy underscores the cautious optimism among buyers, who seem hopeful for a rebound in prices.
However, with UNI still encountering robust resistance levels, the market sentiment remains divided on the likelihood of a prompt recovery. Thus, traders are advised to tread carefully while monitoring critical price levels.
Can Uniswap Rediscover its Bullish Momentum?
The potential resurgence of UNI primarily hinges on the ability of the $13.20 support level to endure.
While the TD Sequential signal and on-chain metrics hint at a potential turnaround, the prevailing bearish trend poses a formidable challenge.
If the $13.20 level falters, further downtrends are anticipated. Thus, despite existing optimism, UNI must robustly defend its support zone to reignite its uptrend.