- UNI traders might be over-leveraged at $7.47 on the upside and $7.03 on the downside
- TD Sequential indicator seemed to be flashing a buy signal for UNI, hinting at a potential rebound
Despite Uniswap [UNI] being affected by the larger crypto-market’s downturn, things might take a turn for the better soon. That is, according to a crypto expert’s latest prediction on X (formerly Twitter).
According to Ali Martinez, UNI, the native token of Uniswap, may be poised for a rebound on the charts after the TD Sequential indicator flashed a buy signal.
Uniswap’s latest collaboration supports a bullish view
Given the current market sentiment and UNI’s recent price decline, a rebound might be unlikely. However, the latest collaboration between Uniswap, Robinhood, and payment service providers MoonPay and Transak for crypto-to-fiat transactions might just strengthen the bullish case for UNI.
In fact, according to Uniswap, this collaboration will allow iOS and Android users in over 180 countries to seamlessly convert cryptocurrencies into fiat and deposit the funds into traditional bank accounts.
And yet, despite such a positive update, UNI registered a 13% price drop, with the altcoin trading near $7.25 at press time. During the same period, its trading volume rose by 10%, indicating heightened participation from traders and investors, compared to the last few days.
Assessing Uniswap’s (UNI) price action
Thanks to its latest bout of depreciation, UNI has paved the way for further downside on the charts. According to AMBCrypto’s analysis, UNI’s outlook might be bearish since it has broken out of three days of consolidation.
Based on its price action and historical patterns, if the altcoin closes a daily candle below the $7.35-level, there is a strong possibility it could drop by 30% to reach $5.25 in the coming days. During the decline, the asset may find mild support at the $6.20-level, which could also serve as a potential rebound zone.
Source: TradingView
However, this bearish thesis will remain valid as long as UNI trades below the $7.35-mark. Otherwise, it could be invalidated.
UNI’s major liquidation areas
A look at the prevailing market sentiment revealed that traders might be shifting their positions too, while heavily betting on the bearish side.
Data from Coinglass revealed that traders, at press time, were over-leveraged at $7.47 on the upside and $7.03 on the downside. At these levels, traders have built $1.71 million worth of short positions and $1.01 million worth of long positions, respectively.
Source: Coinglass
When examining this on-chain data, it would seem that bears are strongly dominating the asset and could easily push UNI’s price lower in the coming days.
