Uniswap Price Struggling As Charts Indicate A Buy Signal

The TD Sequential has flashed a buy on the 4-hour chart of Uniswap (UNI) price. Typically used by traders to spot a reversal of market trends, this indicator indicates that the recent bearish run may soon end.

This signal is weaker or stronger depending on whether $13.20 support holds in the next sessions.

The ninth bearish candle of the trend acts as a buy signal, saying that the price action will become bullish soon.

Now, market participants are looking at this critical zone of support, which could serve as a punt from which a rebound could be mounted.

In past instances, there has already been proof that the TD Sequential can predict reversals, which makes this signal highly significant for traders who would like to follow the price action of UNI.

Uniswap’s Price Declines Over 10% in 24 Hours

Uniswap saw a significant downside trading as its price fell by more than 10% during the 24 hours.

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According to the latest data, UNI is currently trading at $13.01, down from its recent peaks above $15.

Uniswap’s market cap has experienced considerable pressure from this drop, currently at $7.81 billion.

The decline in short-run investor confidence is also observed as the fully diluted valuation (FDV) matches the current price of $13.01 billion.

Although the price has fallen, trading volume for Uniswap increased by 2.31% to $372.49 million in the same period. This indicates increased interest in the asset as traders try to squeeze the volatility.

With a volume-to-market cap ratio of 4.82%, it is clear that UNI is a coin that market participants are also interested in at this stage of the bear market.

Analysts say Uniswap’s price struggles result from supply-side factors like Bitcoin’s consolidation and the general crypto market downturn.

However, the $13.20 support level has become a fulcrum test for traders, where risks and opportunities loom in these market dynamics.

Technical Analysis and Market Outlook

Technically, Uniswap is trading in a clear descending channel, keeping price action contained within the past week.

On the one-hour chart, lower highs and lower lows are visible, and the momentum remained bearish over the past several sessions.

However, $13.20 appears to be a significant zone for buyers to defend. It could still fall and retest near $12.50 if it does not hold this level.

Currently, the Average Directional Index (ADX), a tool used to measure the strength of a trend, is at 36.54.

The momentum of the current market sentiment is strong and bearish, as evidenced by the reading below.

However, the ADX also warns that the trend may be about to end, and a reversal may be possible if buyers lift their game with volume.

With a TD Sequential buy signal on the 4-hour chart, the outlook is even better for the brave. This has historically been a good signal that bearish trends were over and recovery phases began.

Buyers must enter aggressively to defend the $13.20 support and allow the price to be elevated above the key resistance zones for the signal to manifest into price action.

However, above $13.20, UNI faces resistance at $13.70 and $14.10. Breaking that may spur a further recovery rally, skewing towards the $15 zone again.

Conversely, a slow fall beneath $13.20 could lead to Uniswap returning to its December lows, pushing the asset further down.