- Uniswap price hints at pullback as the TD Sequential indicator flashed a sell signal on the weekly chart.
- UNI network saw a reduction in new users joining the network, further supporting the bearish thesis.
- The reversal in Uniswap’s momentum could extend if the support barrier at $20 is breached.
Uniswap price witnessed a remarkable 580% upswing in roughly 46 days. However, this parabolic rally could be reversing soon due to multiple sell signals being flashed on both the technical and the on-chain metrics.
Uniswap price primed for a downswing
Uniswap price shows almost every weekly candlestick closed at least 30% higher than its open since December 28. However, the previous weekly candlestick noted only a 5.7% upswing, which suggested a slowdown in UNI’s momentum.
Rightfully so, what followed next is the sell-signal from the Tom Demark (TD) Sequential indicator in the form of a green nine candlestick. This technical setup forecasts a correction that ranges anywhere between one to four weekly candlesticks.
UNIUSDT weekly chart
Adding to UNI’s bearish woes is the reduction in the number of new users joining the Uniswap network. This metric stands at 3,500 today, which is a 41% decline in new addresses since January 31.
The sudden drop in this on-chain metric indicates that market participants are not interested in purchasing UNI tokens at the current price levels.
Uniswap new addresses chart
As per IntoTheBlock’s Global In/Out of the Money (GIOM) model, the support barrier at $20 is the only one holding Uniswap price from a steep crash. Here, roughly 19,300 addresses purchased nearly 33 million UNI.
In the event of a sharp sell-off leading to this support’s failure, Uniswap price will pullback to the next immediate support at $15, where approximately 12,000 addresses purchased about 26.5 million UNI.
Uniswap IOMAP chart
It is worth mentioning that if Uniswap price slices through the recent high of $23.80, the bearish outlook will be disregarded. Under such unique circumstances, UNI could rise towards the next interest areas at $30 and $37.50.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle (PENDLE) price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Ethereum shows signs of a potential rally as suspected Justin Sun wallet buys heavily
Ethereum's (ETH) recent price movement hints at a potential rally despite ETH ETPs recording outflows. The recent price improvement follows the fourth Bitcoin halving and a suspected Justin Sun wallet purchasing large numbers of ETH.
Floki poised for growth after listing on Revolut
Floki's (FLOKI) team announced in an X post on Monday that the meme coin would be listed on the popular neobank and Fintech platform Revolut. Floki could rise further following key partnerships to boost retail usage.
Jupiter DEX second Launchpad vote concludes, JUP price rises 5%
Jupiter, a Solana-based decentralized exchange (DEX) has completed the second launchpad (LFG) vote to identify the two projects that will debut on its platform. On March 30, the aggregator network had unveiled its Core Working Group (CWG) budget proposal voting.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?