The price of Uniswap (UNI) has decreased by 20% in the past 24 hours, continuing the downtrend after losing the $10 billion market capitalization it once held, now at only $7.2 billion. The sharp decline has pushed UNI into a critical zone, with technical indicators reflecting strong downward moves and the potential for further losses.
A 'death cross' signal is forming on the EMA lines, which could indicate a deeper correction, with key support levels at $9.64 and $8.5 being closely monitored. Conversely, if there is a recovery, UNI could target resistance levels at $13.5 and $16.2, with the potential to rise to $19 if bullish momentum prevails.
The RSI of Uniswap is recovering from the oversold region.
The RSI (Relative Strength Index) for Uniswap is currently at 30.5, recovering slightly from levels around 20 just a few hours ago. An RSI below 30 is considered oversold, indicating strong selling pressure and the potential for undervaluation in the short term.
UNI recently falling into the oversold region indicates aggressive selling activity. However, the slight recovery to 30.5 suggests that selling pressure may be weakening, with the possibility of buyers gradually entering the market.
UNI RSI. Source: TradingView.
The RSI measures the strength and speed of price movements, oscillating from 0 to 100. Its thresholds help interpret market conditions: an RSI below 30 signals oversold conditions and the potential for price recovery, while an RSI above 70 indicates overbought conditions and possible selling pressure.
With Uniswap's RSI just above the overbought threshold, the price may attempt to stabilize or slightly rise. However, if the RSI does not meaningfully increase above 30, it may indicate continued downward pressure and limited recovery potential.
Uniswap's downtrend is currently very strong.
The ADX (Average Directional Index) for UNI is currently at 31.38, significantly up from below 10 just two days ago. This surge indicates that the strength of the current trend has increased significantly over a short period.
Since the current UNI price is in a downtrend, the high ADX indicates that bearish momentum is dominant, making a price decline possible in the short term.
UNI ADX. Source: TradingView.
The ADX measures the strength of a trend, regardless of direction, on a scale from 0 to 100. Values below 20 indicate a weak or non-trending market, values between 20 and 40 indicate a moderate trend, and values above 40 indicate a strong trend.
With the UNI ADX at 31.38, the current downtrend is quite strong and continues to accumulate momentum. In the short term, this implies continued pressure on the UNI price unless buyers step in to counter the prevailing downtrend.
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The EMA (Exponential Moving Average) lines for UNI are currently showing a bearish pattern, with the short-term EMA likely crossing below the long-term EMA. This pattern, known as a 'death cross', typically signals stronger bearish momentum and may trigger a sharper correction.
If a 'death cross' occurs, the price of Uniswap may test the support level at $9.64. If this level does not hold, it may drop further to $8.5, marking a deeper decline.
UNI Price Analysis. Source: TradingView
However, if the UNI price can reverse the downtrend and establish a strong uptrend, it may first challenge the resistance level at $13.5.
A successful breakout above this level could pave the way for a move to $16.2, with the potential to rise further to $19 if bullish momentum continues.
