Why UNI traders should be on the lookout for a potential reversal

ambcrypto.com:

UNI might not be among the best-performing cryptocurrencies over the last 7 days, but its press time position seemed to suggest an upcoming change. In fact, it was flashing multiple signs that make it a healthy candidate for investors looking for potential gainers next week.

UNI tanked by as much as 17% in the last 7 days during which a wave of FUD assisted the crypto-bears. This interrupted UNI’s rally over the previous week, after it interacted with the 0.382 Fibonacci level at the $7-price level. The retracement line triggered sell pressure, with the same in turn leading to a retest of the lower Fibonacci level at the $5.6-price level.

Source: TradingView

UNI’s downside has already tapered out after the support re-test, paving the way for some bullish volumes. Its RSI also confirmed the return of bullish strength, in line with the price action over the last 24 hours.

Source: TradingView

The likelihood of a strong reversal depends on whether UNI can secure enough demand at its current levels.

Active addresses increased rapidly in the last 2 days to their highest level in 4 weeks. This was evidence of an influx in bullish demand.

Source: Santiment

Another factor pointing to increasing buying pressure was the 30-day MVRV ratio after it bounced over the last 2 days.

This observation seemed to confirm that there was significant accumulation at its recent lows.

Source: Santiment

Although these observations pointed towards a higher likelihood of a bullish bounce, there are a few other considerations.

UNI had only managed a slight uptick by press time. A disproportionate outcome, compared to the huge spike in daily active addresses.  This suggested that retail buyers account for the active addresses spike. It might explain the lack of