Uniswap (UNI) Price Faces Pressure Despite Bitcoin’s Rally

Uniswap (UNI) price has struggled recently, dropping almost 5% in the last 24 hours and down 5.24% over the past week, despite Bitcoin’s recent surge. The recent decline highlights the weakness in UNI’s momentum, with technical indicators suggesting a cautious outlook.

Although EMA lines still show a bullish structure, the price slipping below short-term EMAs signals fading buying pressure. A potential reversal could still be on the cards, but caution is warranted 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, driven by a rapid 50% surge in its price within just 24 hours. Since reaching that high, the RSI has gradually declined and currently sits at 43.32. The RSI is an indicator used to assess momentum by measuring the speed and change of price movements, helping identify whether an asset is overbought or oversold.

Typically, an RSI above 70 signals that an asset might be overbought, while an RSI below 30 indicates potentially oversold conditions.

UNI RSI. Source: TradingView

With UNI’s RSI now at 43.32, the indicator suggests that the recent momentum has cooled down considerably. This level falls in the middle range, reflecting neither an overbought nor an oversold condition but rather a balanced market sentiment.

It implies that UNI price could stabilize after the sharp rally, with the potential for either consolidation or a new move depending on shifts in buying or selling pressure.

Uniswap ADX Shows The Current Trend Is Not Strong

UNI’s ADX is currently at 19, down significantly from over 40 just a week ago. The Average Directional Index (ADX) measures the strength of a trend without indicating its direction.

Typically, an ADX reading above 25 suggests a strong trend, while values below 20 indicate a lack of trend or weak momentum. The sharp drop from over 40 to 19 signals that the strength behind UNI’s recent trend has dissipated considerably.

UNI ADX. Source: TradingView.

With Uniswap price presently in a downtrend, an ADX at 19 indicates that the bearish momentum is weak. This suggests that although the price is declining, the downward pressure isn’t particularly strong, potentially hinting at a period of consolidation rather than an aggressive sell-off.

It could also mean that the current trend might reverse soon or that market participants are waiting for a clearer direction before taking action.

UNI Price Prediction: Can UNI Go Below $7 Next?

UNI’s EMA lines currently display a bullish setting, with the short-term lines positioned above the long-term ones. That indicates previously strong upward momentum. However, the price has now fallen below the short-term EMAs, signaling a weakening in buying pressure.

Moreover, the short-term lines are trending downward, and if they cross below the long-term EMAs, this could form a bearish crossover. Such a crossover often suggests the start of new, potentially strong corrections.

UNI Price Analysis. Source: TradingView

If the bearish crossover occurs, UNI price could test support levels around $7.5 and $7.1 and potentially fall to $6.6. However, as indicated by the current ADX reading, the downtrend is not particularly strong. That leaves room for a possible reversal.

If the trend shifts to the upside, UNI price may first challenge resistance at $8.7. If this level is broken, the next target would be $9.6, representing a potential 14% price increase.

Source