Uniswap is also building a chain! UNI is unstoppable! Will it usher in further growth?

The price of Uniswap (UNI) has risen by more than 10% after Uniswap Labs announced the launch of its own Layer-2 Unichain. The price surge has pushed the relative strength index (RSI) to overbought levels, indicating strong buying momentum.
The rapid rise has brought caution to the market as overbought conditions could lead to a pullback. Key resistance and support levels will be crucial in determining UNI’s next price move.
UNI On-Chain Indicators: Do They Support a Bullish Scenario?In addition to price action, on-chain metrics further reinforce UNI’s strong market performance, with active addresses increasing by 1.35% over the past 24 hours, totaling 65.04K, according to data from CryptoQuant.
This increase suggests that more participants are engaging with the Uniswap protocol, a key indicator of the network’s health.
Additionally, the number of transactions increased by 1.6%, with 1.691 million transactions processed during the same period. Therefore, the increase in active addresses and transaction volume indicates a healthy and active user base that can support continued growth.
UNI’s RSI is currently at 80, having surged from 58 in just a few hours following the Unichain news. This rapid increase indicates strong buying momentum as investors reacted positively to the news.
UNI’s RSI is 80, which puts it in overbought territory, meaning the recent price surge could push the asset beyond its fair value in the short term. Overbought conditions typically mean a correction or pullback could be imminent as the buying frenzy cools.
We should remain cautious as prices could become more volatile and vulnerable to downside pressure once profit taking sets in. The current high RSI levels suggest that UNI’s rapid price rise may soon encounter resistance, which could lead to a short-term price correction.

Additionally, UNI’s open interest surged 7.11% to $91.96 million.
The increase in open interest suggests that more traders are entering the market, betting on further price increases. Therefore, this reinforces the broader bullish thesis.
UNI’s bullish momentum, supported by rising trading volumes and healthy on-chain metrics, suggests it could break through resistance. However, liquidity issues could dampen this outlook.
Warning signs appearing?However, the story is slightly different for foreign exchange reserves, which have fallen by 0.17% over the past 24 hours to 57.136 million, with the reduction in selling pressure possibly signaling a potential supply shock.
While this is generally associated with bullish sentiment, traders should proceed with caution. Lower reserves could limit liquidity, making it more difficult for Uniswap to maintain its current gains if demand suddenly spikes.
UNI’s EMA lines show a potential uptrend!UNI’s EMAs are currently showing a clear uptrend, with the short-term line above the long-term line and a considerable distance between them. This configuration is usually bullish and indicates favorable near-term price action.
An EMA, or exponential moving average, is a type of moving average that places more weight on recent prices, making it more responsive to short-term movements. Traders use them to identify ongoing trends and potential reversals by observing the relationship between short-term and long-term moving averages.
However, as shown by the ADX, the current trend is not particularly strong despite the bullish EMA pattern. If the uptrend continues and strengthens, the price of UNI could test the resistance levels of $8.65 and $9.52. A breakout above these resistance levels could push the price to $12, which would be the highest level since June 2024.
On the other hand, if the latest news regarding Unichain is not enough to sustain the momentum and the trend reverses, UNI might test the support levels around $7.7 and $7.5 and potentially drop to $6. This would imply a potential drop of 28%.
in shortAfter Unichain was launched, UNI price surged by more than 10%, pushing the RSI to overbought levels, suggesting a pullback. At the same time, the RSI reached 80, indicating overbought conditions, while its ADX was 28, reflecting medium trend strength. The EMA line shows a potential uptrend, but resistance levels and pullbacks may limit UNI's short-term gains. Technical indicators and other indicators support UNI's bullish outlook in the short term, but it is worth noting that the rapid price surge is accompanied by large market volatility. Some investors are currently cautious about profit-taking, which will further affect the price trend.