UNI needs to hold the $13.20 support level to confirm a bearish reversal.
Market optimism is growing with an increase in active addresses, lower exchange reserves, and an imbalance in liquidations.
Uniswap [UNI] has attracted a lot of attention after triggering a TD Sequential buy signal on the 4-hour chart, sparking hopes of a potential recovery.
Trading at $13.17 at the time of writing, down 11.89% over the past 24 hours, UNI is at a crucial crossroads.
The $13.20 support level is needed for the token to stabilize and reverse its recent downtrend. Therefore, traders are closely watching whether this signal can provide the momentum UNI needs to recover.
UNI Price Analysis: Will Support Hold?
UNI has been facing strong selling pressure, as indicated by the sharp drop from $15.32 to the current price range.
Fibonacci retracements have shown resistance at $15.90 and $17.06, which UNI must overcome to regain bullish momentum.
However, the parabolic SAR, at $14.90 at the time of writing, suggests the bearish trend will continue unless the $13.20 support level holds.
Failure to hold this area could lead to a further decline towards $12.88, raising concerns in the investment community. Therefore, all eyes are on whether buyers can regain control at this important level.
Source: TradingView
Cautious optimism persists
UNI’s on-chain metrics present a mixed picture, with slight improvements in network activity generating cautious optimism.
The number of active addresses has increased by 1.12% over the past 24 hours, indicating a slight increase in user participation.
Additionally, the number of transactions increased by 1.01%, indicating a gradual increase in network usage. However, these increases are still quite small and may not indicate a strong reversal in sentiment.
Therefore, while the fundamentals show some resilience, they are not yet strong enough to trigger a solid recovery.
Source: CryptoQuant
Reducing exchange reserves means…
UNI’s exchange reserve has decreased by 0.75% over the past 24 hours, standing at 68.63 million tokens at the time of writing. This indicates lower selling pressure, as the number of tokens available for trading on the exchange decreases.
However, this also reflects market caution, with holders choosing to wait rather than actively buy or sell.
Therefore, while the trend is slightly positive, it remains uncertain whether it can fuel a sustained bullish momentum.
Source: CryptoQuant
Liquidation data shows market uncertainty
Liquidation data provides further insight into market sentiment. Total long liquidations reached $397.89K, significantly higher than the $96.73K in short liquidations.
This imbalance reflects cautious optimism among buyers, who appear to be anticipating a recovery.
However, with UNI still facing strong resistance, the market remains divided on whether a recovery will occur. Therefore, traders should proceed with caution while keeping an eye on key price levels.
Source: Coinglass
Can Uniswap Recapture the Bullish Momentum?
UNI’s recovery depends entirely on whether the $13.20 support level holds.
While TD Sequential signals and on-chain metrics suggest resilience, the broader bearish trend remains a significant challenge.
If the $13.20 level is broken, further declines are likely. Therefore, despite the optimism, UNI must hold support to regain bullish momentum.
