Uniswap Bearish Pressure Is Growing

Uniswap’s native token has faced a challenging period since the start of the year, with its price dropping nearly 50% from its previous high. However, this correction reached key liquidity levels, triggering a strong positive reaction that suggests a potential trend reversal.

While the signs of recovery are promising, it is crucial to analyze specific parameters and follow precise trade management rules to navigate this opportunity effectively. In this analysis, we break down the key factors that could determine whether Uniswap will bounce back up in the weeks to come.

Daily time frame analysis

UNIUSD - 1 Day Time Frame

From a technical perspective, a key bullish signal has emerged. Uniswap’s price has successfully closed above a critical resistance zone, confirming it as new support. This shift reinforces bullish momentum and increases the likelihood of continued growth.

Additionally, the price dipped below key lows, triggering a high-volume liquidity sweep. This combination of technical confirmations strengthens the bullish case, offering traders a potential entry opportunity.

Uniswap price target

Entering a trade is just the first step—proper risk management is essential. Immediately after opening a position, traders could place a stop-loss order below the internal low, as indicated on the attached chart.

If the price closes below the newly established support zone on the daily timeframe, it would weaken the bullish outlook. In such a scenario, selling part of the position would be a prudent move to mitigate risk.

The final element of trade management is a profit-taking strategy. In the long run, an effective approach is to prioritize securing partial profits at buy-side liquidity levels, ensuring gains are realized while still allowing room for further upside potential.