UNI Price Analysis: Can Support Hold?
Uniswap is facing huge selling pressure, with it falling sharply from its earlier high of $15.32 to the current price range.
The recent Fibonacci Retracement levels have identified key resistance points at $15.90 and $17.06, both of which UNI must surpass to regain the upward momentum in the market.
Additionally, the Parabolic SAR indicator, currently at $14.90, suggests that the bearish trend is likely to continue unless the price maintains the $13.20 support level.
Failure to hold this area could lead to a further drop to $12.88, fueling investor concerns. Buyer activity remains a focus at this critical threshold.
Cautious optimism remains
UNI’s on-chain metrics present a mixed picture, with slight improvements in network activity sparking cautious optimism.
Over the past 24 hours, active addresses have increased by 1.12%, indicating a slight uptick in user engagement.
In addition, the number of transactions increased by 1.01%, reflecting a gradual increase in network usage. However, these improvements are relatively small and do not necessarily indicate a strong reversal in market sentiment.
Therefore, while fundamental indicators show some resilience, they are not yet sufficient to trigger a clear recovery.
Falling foreign exchange reserves mean…
A recent report showed that UNI’s exchange reserves have decreased by 0.75% in the past 24 hours and currently stand at 68.63 million tokens. This drop indicates a reduction in selling pressure as fewer tokens are available for trading on exchanges.
However, it also suggests that market sentiment is cautious, with holders choosing to wait for favorable trading conditions rather than actively buying or selling.
While the trend looks slightly positive, it remains to be seen whether it can form a sustained upward momentum in the long term.
Liquidation data highlights market uncertainty
Liquidation data analysis reveals the current market sentiment. Long liquidations amounted to $3,978,900, far exceeding short liquidations of $967,300.
This imbalance suggests a degree of cautious optimism among buyers, who appear to anticipate an imminent market rebound.
However, as UNI has encountered considerable resistance levels, the market remains divided on the possibility of a recovery. Therefore, traders are advised to proceed with caution and keep a close eye on key price indicators.
Can Uniswap regain its bullish momentum?
UNI’s rebound potential is closely tied to its ability to maintain the critical $13.20 support level.
While signs from the TD sequential signal and on-chain indicators hint at a recovery, the ongoing bearish trend presents significant challenges.
Failure to sustain the $13.20 threshold could lead to further declines, further reinforcing the need for traders to remain cautiously optimistic when assessing future market conditions.