- UNI’s price action depends on holding $13.20 support to avoid further decline.
- TD Sequential buy signal suggests potential rebound if support holds at $13.20.
- Weak momentum shown by RSI and MACD indicates continued bearish pressure for UNI.
Uniswap (UNI) is at a pivotal point in its price action. According to analyst Ali Martinez, the 4-hour chart for UNI shows a TD Sequential buy signal, indicating the potential for a rebound.
However, the price’s fate heavily depends on whether the $13.20 support level can hold. This crucial price point could determine if the token enters a bullish phase or if the bearish momentum continues. As of press time, UNI is trading at $13.36, marking a 10.31% decline in the past 24 hours.
The TD Sequential presents a buy signal on the #Uniswap $UNI 4-hour chart for a potential rebound, but it will all depend on whether the $13.20 support can hold. pic.twitter.com/27DWW5JMv3
— Ali (@ali_charts) January 8, 2025
TD Sequential Buy Signal and the $13.20 Support
The TD Sequential indicator is currently signaling a potential trend reversal for Uniswap. The appearance of a “9” green candle suggests that the ongoing downtrend may be running out of steam.
However, this bullish outlook is not without its conditions. UNI must maintain support at $13.20 for the rebound to gain traction. If this key level holds, it could provide a base for buyers to step in, potentially pushing the price toward higher levels.
Resistance levels lie at $14.20 and $14.60, with these zones offering potential targets for bullish continuation. However, if UNI falls below $13.20, the buy signal could be invalidated, and the downtrend could extend. Hence, monitoring this support level is critical in determining UNI’s short-term price action.
Market Activity and Price Dynamics
Uniswap’s price fluctuations are influenced by notable shifts in spot inflows and outflows. These variations indicate changes in market sentiment, reflecting investor confidence or concerns. For example, significant outflows in March and April were linked to a price dip to around $5, signaling selling pressure and reduced market confidence. On the other hand, a resurgence in inflows helped UNI recover, pushing the price up to $18 in December.
Despite these fluctuations, the price faced sharp corrections in December due to substantial outflows, leading UNI to drop below $13 by the end of the year. The market continues to show signs of volatility, making it essential for traders to keep an eye on these liquidity changes as they could have an immediate impact on UNI’s price.
Technical Indicators and Momentum
Looking at technical indicators, UNI is showing weak momentum. The RSI is at 43.34, suggesting that UNI is currently in neutral territory and could be heading toward oversold territory.
Meanwhile, the MACD remains negative at -0.005, confirming the presence of bearish momentum. These indicators reinforce the notion that UNI is currently facing significant downward pressure.