Uniswap ($UNI ) price is down 20% in the past 24 hours, continuing its downtrend after losing the $10 billion market cap it held just days ago, now sitting at $7.2 billion. This sharp decline has pushed UNI into the danger zone, with technical indicators reflecting strong bearish momentum and the possibility of further losses.
A death cross is forming in the EMAs signaling a deeper correction, with key support levels at $9.64 and $8.5 being closely watched. On the upside, if there is a reversal, UNI could target resistance levels at $13.5 and $16.2, with a potential move to $19 if bullish momentum picks up.
Uniswap's RSI is recovering from oversold territory
The RSI (Relative Strength Index) for Uniswap is currently at 30.5, a slight recovery from levels around 20 seen a few hours ago. An RSI below 30 is considered oversold, indicating excessive selling pressure and a potential short-term undervaluation. UNI recently dipped into oversold territory, indicating strong selling activity. However, the slight recovery to 30.5 suggests that selling momentum may be waning, with buyers gradually returning to the market.
The RSI measures the strength and speed of price movements, ranging from 0 to 100. Its levels help interpret market conditions: an RSI below 30 signals oversold conditions and a potential price recovery, while an RSI above 70 indicates overbought conditions and possible selling pressure.
With Uniswap RSI just above oversold levels, the price may attempt to stabilize or see a slight recovery. However, if RSI fails to rise significantly above 30, it could indicate continued bearish pressure and limited recovery in the short term.
Uniswap is in a very strong downtrend right now
The ADX for UNI is currently at 31.38, a significant increase from below 10 just two days ago. This sharp increase shows that the strength of the current trend has increased significantly in a short period of time. Since $UNI is currently in a downtrend, the rising ADX indicates that bearish momentum is strengthening, making the possibility of further price declines in the short term very high.
ADX measures the strength of a trend, regardless of its direction, on a scale of 0 to 100. Values below 20 indicate a weak or directionless trend, values between 20 and 40 indicate a moderate trend, and values above 40 indicate a strong trend.
With UNI’s ADX at 31.38, the current downtrend is quite strong and still gaining momentum. In the short term, this level implies continued pressure on UNI’s price unless buyers intervene to counter the current downtrend.
UNI Price Prediction: Could Drop Below $10 Soon
UNI’s EMAs are currently showing a bearish setup, with the shorter-term EMA approaching the possibility of crossing below the longer-term EMA. This pattern, known as a death cross, usually signals stronger bearish momentum and could trigger a deeper correction.
If the death cross occurs, Uniswap price could test the support level at $9.64. If this level fails to hold, it could fall further to $8.5, marking a deeper decline.
However, if the $UNI price can reverse the downtrend and build a strong uptrend, it could challenge the first resistance level at $13.5. A successful break above this level could pave the way for a move to $16.2, with the possibility of a further rise to $19 if the bullish momentum continues.
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