Is Uniswap on a bullish reversal?

• Uniswap is the largest DEX with a $5.52 billion TVL.

• Uniswap token has been recovering in the last seven days.

• UNI has further potential after keeping key support and is a hold or buy on a retracement.

Uniswap UNI/USD is the leading decentralized exchange, with a total value locked of $5.52 billion. Out of the TVL, $5.3 billion is locked on Ethereum. Thus, it is expected that the Ethereum Merge will impact protocols such as Uniswap.

Uniswap has been gaining in the last one week ahead of the projected soft date of September 15 for the Merge. It is still too early to speculate that the gains are attributed to the Merge. Across the sector, most cryptocurrencies have been gaining. The gains in UNI reflect the broader crypto sentiment rather than the Merge itself.

UNI recovers from the $5.6 support as the price shows bullish signs

Source – TradingView

Looking at the daily chart, UNI is initiating a bullish reversal after buyers resisted bears at $5.6. The price retested the support before bouncing back and recently crossed above the 20-day MA. Multiple inside bars formed at the support before the price broke to the upside. The breakout confirms a bullish momentum.

The MACD technical indicators also show a building momentum, with a bullish crossover. However, the MACD indicator remains below 0, suggesting that UNI’s bear market is yet to end.

Concluding thoughts

While technical indicators are mixed for UNI, the token shows renewed strengths. The price resisted bearish pressure at $5.6 two times. It broke above multiple pin bars, and the 20-day MA joined support. The price action reinforces a bullish bias in the short term. A potential retracement is an opportunity to buy while the price maintains $5.6 support.