Uniswap (UNI) price has struggled recently, falling nearly 5% in the past 24 hours and 5.24% in the past week, despite Bitcoin’s rise. The recent decline highlights weakness in UNI’s momentum, with technical indicators suggesting a cautious outlook.
While the EMAs still show a bullish structure, the price sliding below the short-term EMAs indicates that buying pressure is fading. A reversal is still possible, but caution is advised as the current trend remains vulnerable to further downside.
UNI's RSI is in the neutral zone
On November 7, UNI’s RSI hit 85, fueled by a 50% spike in price in just 24 hours. Since that peak, the RSI has been declining and currently stands at 43.32. The RSI is an indicator used to gauge momentum by measuring the speed and change of price movements, helping to determine whether an asset is overbought or oversold.
Typically, an RSI above 70 signals that the asset may be overbought, while an RSI below 30 indicates conditions may be oversold.
With UNI's RSI currently at 43.32, the indicator suggests that recent momentum has cooled considerably. This level is in the neutral range, reflecting a condition that is neither overbought nor oversold, but a balanced market sentiment.
It implies that UNI price may stabilize after the spike, with the possibility of consolidation or a new move depending on the change in buying or selling pressure.
Uniswap's ADX indicator shows the current trend is not strong
UNI's ADX is now 19, down significantly from over 40 just a week ago. The Average Directional Index (ADX) measures the strength of a trend without indicating its direction.
Typically, an ADX reading above 25 indicates a strong trend, while readings below 20 indicate a lack of trend or weak momentum. The sharp drop from over 40 to 19 signals that the strength behind UNI's recent trend has weakened significantly.
With Uniswap price currently in a downtrend, an ADX of 19 suggests that bearish momentum is weak. This suggests that although the price is falling, the downward pressure is not strong, which could suggest a consolidation phase rather than a drastic sell-off.
It could also mean that the current trend may soon reverse or that market participants are still waiting for a clearer direction before taking action.
UNI Price Prediction: Will UNI Go Below $7 Next?
UNI’s EMAs are currently showing a bullish configuration, with the short-term lines above the long-term lines. This indicates strong bullish momentum before. However, the price has now dipped below the short-term EMAs, signaling weakening buying pressure.
Furthermore, the short-term lines are trending down, and if they cross below the long-term EMAs, this could form a bearish crossover. This type of crossover usually indicates the start of a new, possibly strong, correction.
UNI Price Analysis. Source: TradingView
If a bearish cross occurs, UNI price could test support levels around $7.5 and $7.1 and possibly drop to $6.6. However, as indicated by the current ADX indicator, the downtrend is not particularly strong. This leaves room for a possible reversal.
If the trend turns bullish, UNI could challenge the first resistance level at $8.7. If this level is broken, the next target would be $9.6, representing a possible upside of up to 14%.
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