Despite Bitcoin’s recent surge, Uniswap (UNI) price has underperformed recently, falling nearly 5% in the past 24 hours and 5.24% in the past week. The recent decline highlights UNI’s weakening momentum, with technical indicators suggesting a cautious outlook.
Although the moving averages still show a bullish structure, the price has broken below the short-term moving averages, which suggests a weakening of buying pressure. A potential reversal is still possible, but caution is needed as the current trend remains vulnerable to further downside.
UNI RSI is in the neutral zone
On November 7, UNI’s relative strength index (RSI) hit 85 as its price quickly surged 50% in just 24 hours. Since reaching that high, the RSI has gradually declined and currently stands at 43.32. The RSI is an indicator that assesses momentum by measuring the speed and change of price movements, helping to determine if an asset is overbought or oversold.
Typically, an RSI above 70 indicates that an asset may be overbought, while an RSI below 30 indicates potential oversold conditions.
UNI’s RSI is currently at 43.32, which 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 stabilize after a sharp rise, and depending on the changes in buying or selling pressure, consolidation or a new trend may occur.
Uniswap ADX shows that the current trend is not strong
UNI’s ADX is currently at 19, a sharp drop from a week ago when it was over 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 over 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 great, possibly hinting at a period of consolidation rather than a major sell-off.
It could also mean that the current trend may soon reverse, 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 setup, with the short-term line above the long-term line. This suggests a strong upward momentum ahead. However, the price has now fallen below the short-term EMA, suggesting a weakening buying pressure.
Moreover, the short-term lines are trending down and could form a bearish crossover if they cross below the long-term moving averages. Such crossovers usually signal the start of a new, potentially powerful 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 turns upward, UNI price may first challenge the $8.7 resistance level. If it breaks above this level, the next target will be $9.6, which means the price could rise by 14%.
