The price of Uniswap (UNI) has fallen 20% in the last 24 hours, continuing its bearish trajectory after losing the $10 billion market capitalization it held just a few days ago and which now stands at $7.2 billion. The sharp decline has pushed UNI into the critical zone, with technical indicators reflecting strong downside momentum and the potential for further losses.
A looming death cross at the EMA lines signals a possible deeper correction is possible, with key support levels at $9.64 and $8.5 being closely watched. On the downside, a reversal could see UNI target resistance levels at $13.5 and $16.2, with room to rise to $19 if the bullish momentum picks up.
Uniswap RSI Recovering from oversold zone
The RSI (relative strength index) for Uniswap is currently at 30.5, which is a slight recovery from the level around 20 seen a few hours ago. An RSI below 30 is considered oversold, indicating excessive selling pressure and the possibility of short-term undervaluation.
UNI’s recent fall into oversold territory suggests intense selling activity. However, a slight rebound to 30.5 signals that the selling momentum may be weakening and there is a possibility of buyers gradually returning to the market.
RSI measures the strength and speed of price movements, fluctuating between 0 and 100. Its thresholds help interpret market conditions: an RSI below 30 signals oversold conditions and a potential price rebound, while an RSI above 70 indicates overbought conditions and possible selling pressure. .
With the Uniswap RSI hovering just above the oversold threshold, the price may attempt to stabilize or see a slight rebound. However, if the RSI fails to rise significantly above 30, it could indicate continued bearish pressure and limited recovery in the short term.
Uniswap The downtrend is very strong now
ADX (Average Directional Index) for UNI is currently at 31.38, a significant increase from below 10 just two days ago. This sharp increase indicates that the strength of the current trend has increased significantly in a short period.
As UNI price is currently in a downtrend, an elevated ADX suggests bearish momentum is gaining strength, making further downward price movement likely in the near future.
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 ADX UNI at 31.38, the current downtrend is moderately strong and continues to gain momentum. In the short term, this level suggests continued pressure on the UNI price unless buyers intervene to counter the prevailing bearish trend.
UNI price forecast: altcoin may soon fall below $10
The UNI EMA (exponential moving average) lines are currently bearish, with the short-term EMA approaching a potential crossover below the longer-term EMA. This pattern, known as a death cross, often signals stronger bearish momentum and can trigger a sharper correction.
If a death cross occurs, the Uniswap price could test the support level at $9.64. If this level does not hold, the price could fall to $8.5, which would imply a deeper decline.
However, if UNI price is able to reverse the bearish trend and build a strong uptrend, it may challenge the resistance at $13.5 first.
A successful break above this level could pave the way for a move towards $16.2, with the potential for further gains to $19 if the bullish momentum continues.
