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, down by 11.89% within 24 hours, UNI is now at a critical juncture.
The crucial $13.20 support level is vital for the stability and reversal of the recent downtrend in the token’s value. Therefore, traders are closely watching to see if this support can provide the necessary boost for UNI to make a comeback.
UNI Price Evaluation: Can Support Levels Endure?
UNI has faced intense selling pressure, evident by the sharp drop from $15.32 to its current price level.
The Fibonacci retracement levels have highlighted resistance at $15.90 and $17.06, levels that UNI must surpass to regain its upward momentum.
However, the parabolic SAR, currently at $14.90, indicates that the bearish trend could persist if the $13.20 support does not hold strong.
A failure to maintain this support could trigger further declines towards $12.88, causing apprehension among investors. Therefore, all eyes are on the potential resurgence of buyers at this critical level.
Guarded Positivity Persists
On-chain measurements for UNI portray a mixed outlook, with slight enhancements in network activity offering guarded positivity.
Active addresses have risen by 1.12% over the past 24 hours, signifying a minor uptick in user involvement.
Moreover, transaction counts have surged by 1.01%, showing a gradual increase in network utilization. Nonetheless, these improvements are relatively modest and may not indicate a firm shift in sentiment.
As a result, while the fundamentals demonstrate some resilience, they may not be robust enough to spark a definitive recovery yet.
Decreasing Exchange Reserves Signal…
In the last 24 hours, UNI’s exchange reserves have dropped by 0.75%, with the current figure standing at 68.63 million tokens. This downturn suggests diminished selling pressure due to fewer tokens accessible for trading on exchanges.
Nevertheless, it also mirrors cautious market sentiment, with holders opting to hold rather than actively trade.
Thus, although this trend is mildly positive, its capability to drive a sustained upward trajectory remains uncertain.
Market Uncertainty Revealed through Liquidation Data
Insights into market sentiment were provided through liquidation data. Long liquidations amounted to $397.89K, surpassing shorts of $96.73K significantly.
This imbalance reflects a sense of cautious optimism among buyers who seem to be anticipating a rebound.
However, with UNI still encountering robust resistance levels, the market remains divided on the likelihood of an imminent recovery. Traders should exercise caution while monitoring crucial price points.
Can Uniswap Recapture Bullish Momentum?
UNI’s potential for recovery hinges entirely on the ability of the $13.20 support level to hold firm.
Despite the TD Sequential signal and on-chain metrics hinting at a possible resurgence, the prevailing bearish trend poses a significant obstacle.
If $13.20 support falters, further downward movements are probable. Therefore, while optimism exists, UNI must robustly defend its support level to reestablish its bullish trajectory.