The TD Sequential indicator has flashed a buy signal on the 4-hour chart of Uniswap (UNI) price. This indicator, typically used by traders to spot market trend reversals, indicates the recent bearish trend may soon come to an end.
Current Uniswap Price Situation
Uniswap has experienced a significant downside, with its price falling by more than 10% over 24 hours. UNI is currently trading at $13.01, down from recent peaks above $15. Uniswap’s market cap also faces pressure, now at $7.81 billion. Despite the price drop, trading volume increased by 2.31% to $372.49 million, indicating growing interest from traders amid high volatility.
Technical Indicator Analysis
Technically, Uniswap is trading in a descending channel. The one-hour chart shows lower highs and lower lows, with bearish momentum. However, the $13.20 acts as a significant zone for buyers to defend. Failing to hold this level could see the price retest near $12.50. The Average Directional Index (ADX) reads 36.54, indicating strong sentiment yet signaling a potential trend end.
Potential Outcomes
With a TD Sequential buy signal on the 4-hour chart, there is a probability of ending the bearish trend if buyers aggressively defend the $13.20 support. Breaking resistance at $13.70 and $14.10 may lead to a rally towards $15. Conversely, a fall below $13.20 could push Uniswap back to its December lows.
Therefore, the next trading sessions are crucial for determining Uniswap's price direction, with the $13.20 support level being pivotal for traders.
