UNI Faces Critical $13.20 Support: Can It Spark a Potential Rebound?

• Uniswap (UNI) has emerged as a focal point in the cryptocurrency market, showcasing rebound potential amidst critical support levels that demand attention.

• Traders remain vigilant as market dynamics shift, marked by rising active addresses, declining exchange reserves, and distinct liquidation trends influencing sentiment.

• “UNI must hold the $13.20 support to confirm reversal amid bearish momentum,” emphasized a recent analysis from COINOTAG.

Uniswap [UNI] faces critical price levels as traders analyze support resilience, with market indicators showing cautious optimism in a bearish landscape.

UNI price analysis: Will support levels hold?

Uniswap has faced substantial selling pressure, illustrated by its sharp decline from an earlier high of $15.32 down to the current price range.

Recent Fibonacci retracement levels have identified crucial resistance points at $15.90 and $17.06 that UNI must surpass to regain upward momentum in the market.

Additionally, the parabolic SAR indicator, currently at $14.90, suggests that the bearish trend could persist unless the price maintains the $13.20 support level.

A potential failure to hold this zone may prompt further declines towards $12.88, intensifying concerns among investors. Attention remains fixed on buyer activity at this pivotal threshold.

Source: TradingView

Cautious optimism lingers

On-chain metrics for UNI present a mixed outlook, where slight improvements in network activity contribute to cautious optimism.

In the last 24 hours, active addresses saw a 1.12% increase, indicating a modest uptick in user engagement.

Furthermore, transaction counts recorded a 1.01% rise, reflecting gradual growth in network usage. Nonetheless, these improvements are relatively minor and may not necessarily signal a robust reversal in market sentiment.

Thus, while fundamental indicators show some resilience, they are not yet sufficient to ignite a definitive recovery.

Source: CryptoQuant

Declining exchange reserves mean…

A recent report indicated that UNI’s exchange reserves have decreased by 0.75% over the past 24 hours, currently resting at 68.63 million tokens. This decline suggests diminished selling pressure, as fewer tokens are available for trading on exchanges.

However, it also signifies a cautious market sentiment, with holders opting to await favorable trading conditions rather than engaging in active buying or selling.

While this trend appears slightly positive, questions remain on whether it can foster sustained upward momentum in the longer term.

Source: CryptoQuant

Liquidation data highlights market uncertainty

Analysis of liquidation data sheds light on current market sentiment. Long liquidations amounted to $397.89K, significantly exceeding shorts at $96.73K.

This imbalance indicates a degree of cautious optimism from buyers, who seem to anticipate a forthcoming rebound.

Nevertheless, with UNI encountering substantial resistance levels, market views remain split on the likelihood of a recovery. Therefore, traders are advised to exercise caution, keeping a close watch on key price metrics.

Source: Coinglass

Can Uniswap reclaim bullish momentum?

The potential for a rebound in UNI is intricately linked to the ability to maintain the critical $13.20 support level.

While indications from the TD Sequential signal and on-chain metrics hint at a recovery, ongoing bearish trends pose significant challenges.

A failure to uphold the $13.20 threshold would likely result in further declines, reinforcing the need for cautious optimism among traders as they assess market conditions moving forward.