The price of Uniswap (UNI) has been struggling recently, falling nearly 4% in the past 24 hours and 8.61% in the past week. The recent decline highlights the weakness of UNI’s momentum, and technical indicators suggest a cautious outlook.
Although the EMA lines still show a bullish structure, the price breaking below the short-term EMAs suggests that buying pressure is waning. A reversal is still possible, but caution is warranted as the current trend remains vulnerable to further declines.
UNI RSI is in the neutral zone
On November 7, UNI’s relative strength index (RSI) reached 85 as its price quickly rose 50% in just 24 hours. Since reaching this high, the RSI has gradually declined and is currently at 43.32. The RSI is an indicator that assesses 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 indicates that an asset may be overbought, while an RSI below 30 indicates that oversold conditions may exist.
UNI’s RSI is currently at 43.32, an indicator that suggests that recent momentum has cooled significantly. This level is in the middle range, reflecting neither overbought nor oversold conditions, but rather a balanced market sentiment.
This means that UNI price may be stabilizing after a sharp rise and may see consolidation or a new trend depending on changes in buying or selling pressure.
Uniswap ADX shows that the current trend is not strong
UNI’s ADX is currently at 19, which is a significant drop from a week ago when it was at 40. The Average Directional Index (ADX) measures the strength of a trend but does not indicate its direction.
Typically, ADX readings above 25 indicate a strong trend, while readings below 20 indicate a lack of trend or weak momentum. The sharp drop from above 40 to 19 suggests that the force behind UNI’s recent trend has weakened significantly.
As Uniswap price is currently in a downtrend, an ADX of 19 indicates weak bearish momentum. This suggests that although the price is falling, the downward pressure is not particularly strong, possibly hinting at a period of consolidation rather than a major sell-off.
It could also mean that the current trend could reverse soon, or that market participants are waiting for clearer direction before taking action.
UNI Price Prediction: Will UNI Drop Below $7 Next?
UNI’s EMA lines are currently showing a bullish trend, with the short-term line above the long-term line. This suggests that the previous uptrend had strong momentum. However, the price has now fallen below the short-term EMA, suggesting that the buying pressure is waning.
Moreover, the short-term lines are trending down and could form a bearish crossover if they break below the long-term EMA. Such a crossover usually signals the start of a new, potentially strong, correction.
In the event of a bearish crossover, UNI price could test support levels near $7.5 and $7.1 and could drop to $6.6. However, as the current ADX readings indicate, the downtrend is not particularly strong. This leaves room for a possible reversal.
If the trend is upward, UNI price may first challenge the $8.7 resistance level. If this level is broken, the next target will be $9.6, which means the price may rise by 14%.
