Uniswap flashes sell signal while prominent analyst prepares to buy the dip at $9
- Uniswap recently hit a new all-time high around $13, following a weekly winning streak.
- The TD Sequential indicator presented a sell signal on the 12-hour chart, reinforcing the potential freefall.
- According to IntoTheBlock on-chain metrics, the positive network growth is a bullish signal for UNI in the near term.
Uniswap is preparing for a downswing that could be significant if a sell signal on the 12-hour chart confirms. The bearish picture has come into existence after the decentralized token rose to a high new record high above $13, as reported.
Uniswap eyes a 30% breakdown
The TD Sequential indicator has presented a sell signal on the 12-hour chart. The call to sell took the form of a green nine candlestick. If validated, Uniswap may correct in one to four daily candlesticks.
Simultaneously, the chart shows that UNI drops between 30% and 40% every time a sell signal flashes. Therefore, the current bearish call could see the cryptocurrency fall under $10 and perhaps retest support at $9.
UNI/USD 4-hour chart
According to Michaël van de Poppe, a renowned analyst, Uniswap is on the brink of a downswing to $9, where he says that he will buy the dip. He affirmed that DeFi is a massive sector in the cryptocurrency industry and worth focusing on throughout the end of 2021.
#Uniswap reaches the 2.618 Fibonacci level here, massive move. Covered a few times.
— Michaël van de Poppe (@CryptoMichNL) January 26, 2021
Looking at the $9 level for 'buy the dip' opportunities should be fine. #DeFi is a big sector to focus on throughout this year. pic.twitter.com/rvThwPOA7T
Looking at the other side of the picture
Despite the vivid bearish technical picture, Uniswap is still in the bulls' good graces according to the "Daily Active Addresses" metric. This on-chain tool developed by IntoTheBlock and gives insight regarding the number of newly created addresses on the protocol.
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Uniswap new addresses
The network growth has been consistent since January 11, from a monthly low of roughly 1,200 addresses to 3,300 by January 26. An increase in network growth is a bullish signal for the future price of the token.
At the same time, it shows the token and network are expanding. Moreover, this metric indicates that Uniswap has an optimum token inflow and outflow, likely to give way to an increase in value.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
