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Uniswap’s make-or-break moment: Will $13.20 support hold firm?
The cryptocurrency market is bracing for a crucial moment for Uniswap [UNI], as the token’s price struggles to maintain the vital $13.20 support level. The last 24 hours have seen UNI drop by 11.89% to trade at $13.17, casting doubt over its potential rebound.
The TD Sequential buy signal on the four-hour chart has sparked optimism among traders, with active addresses rising by 1.12% and transaction counts increasing by 1.01%. However, the failure of UNI to hold this support level would have devastating consequences for investors who are already reeling from the recent market downturn.
A breakdown below $13.20 could result in a further decline towards $12.88, posing significant risks for holders. Conversely, if the price can regain its footing and maintain this crucial level, it may signal a reversal of UNI’s downward momentum.
On-chain metrics indicate that exchange reserves have decreased by 0.75% over the past day, indicating reduced selling pressure. Nevertheless, investors should exercise caution as this data also suggests a lack of conviction among holders, who are instead opting to hold rather than actively participate in trading.
The liquidation imbalance has further heightened concerns about UNI’s short-term prospects. Long liquidations have far outweighed shorts by $301,116, highlighting the bearish momentum that continues to weigh heavily on the market.
Despite these indicators of potential recovery, it is crucial for traders and investors alike to recognize the severity of this moment for Uniswap. The token’s ability to hold its support level will be a critical determinant in dictating the trajectory of its future price action.
If $13.20 fails to hold, we may witness further declines that would have far-reaching consequences for those invested in UNI. Conversely, should this level prove resilient and begin to rally, it could mark a significant turning point for the token’s fortunes.
As such, it is imperative for market participants to maintain a high degree of vigilance as Uniswap navigates this critical juncture.
Source: ambcrypto.com
