Uniswap (UNI) Price Analysis: Will Support Levels Hold?

Uniswap [UNI] has generated significant attention after triggering a TD Sequential buy signal on its 4-hour chart, sparking optimism for a potential recovery.

Uniswap [UNI] traders can breathe a sigh of relief following a TD Sequential buy signal on its 4-hour chart. At press time, the token was trading at $13.17, reflecting an 11.89% decrease over the last 24 hours.

As UNI attempts to stabilize and reverse its recent downtrend, the $13.20 support level becomes crucial.

Moreover, key Fibonacci retracement levels highlighted resistance at $15.90 and $17.06, which UNI must clear to regain upward momentum.

However, the parabolic SAR, at $14.90 at press time, indicated a continuation of the bearish trend if the $13.20 support fails to hold.

In such a scenario, further declines toward $12.88 could be observed.

After facing strong selling pressure, UNI now trades within a critical price range following a sharp decline from $15.32.

Fibonacci retracement levels showcased resistance at $15.90 and $17.06, presenting obstacles that UNI must overcome to regain bullish momentum.

However, the parabolic SAR, at $14.90 at press time, suggested a continuation of the bearish trend.

Unless the $13.20 support holds firm, further declines could be observed, raising concerns among investors as a failure to maintain this zone might lead to further downward movement toward $12.88.

Source: TradingView

Cautious optimism from on-chain metrics

On-chain metrics for UNI presented a mixed outlook. Slight increases in network activity offered cautious optimism.

Active addresses rose by 1.12% over the last 24 hours, indicating a modest rise in user engagement. Additionally, transaction counts increased by 1.01%, reflecting incremental growth in network usage.

However, these increases were relatively minor and might not be indicative of a strong reversal in sentiment. As a result, while fundamentals showed some resilience, they were not yet robust enough to spark a definitive recovery.

Source: CryptoQuant

UNI’s exchange reserves decreased by 0.75% over the last 24 hours, amounting to 68.63 million tokens at press time. This indicated lower selling pressure, as fewer tokens were available for trading on exchanges.

However, it also reflected cautious market sentiment, with holders choosing to wait rather than actively buy or sell. Therefore, while this trend was slightly positive, it remained uncertain whether it could drive sustained upward momentum.

Source: CryptoQuant

Liquidation data offered further insights into market sentiment. Long liquidations totaled $397.89K, significantly higher than $96.73K in shorts. This imbalance reflected cautious optimism among buyers, who appeared to anticipate a rebound.

However, with UNI still facing strong resistance levels, the market remained divided on whether a recovery was imminent. Hence, traders were advised to proceed with caution while monitoring key price levels.

Source: Coinglass

Uniswap’s rebound potential hinged entirely on whether the $13.20 support level holds. If it fails, further declines are likely.