- Uniswap (UNI) has dropped nearly 5% in the past 24 hours, showing weakening momentum despite Bitcoin’s rally, with technical indicators like a neutral RSI and low ADX signaling potential consolidation or a trend reversal.
- While the price may test support levels around $7.5, a bullish shift could push UNI towards resistance levels at $8.7 or $9.6, depending on market conditions.
Uniswap (UNI) has been under pressure lately, struggling to keep up despite Bitcoin’s recent surge. Over the past 24 hours, UNI’s price dropped around 5%, with the past week showing a total decline of 5.24%. This drop hints at fading buying interest, as technical indicators suggest a cautious outlook. Here, we break down the key indicators influencing UNI’s market sentiment and potential future moves.
UNI’s Price Decline Amid Bitcoin’s Rise
Bitcoin’s rally has lifted many cryptocurrencies, but UNI seems to be bucking the trend. A key factor in UNI’s recent dip is its price slipping below crucial Exponential Moving Averages (EMAs). Although the overall EMA structure remains slightly bullish, UNI’s drop below short-term EMAs signals that buying momentum may be waning, making the market more vulnerable to further downside.
Neutral Market Momentum: RSI Indicator Signals Caution
The Relative Strength Index (RSI) is a popular tool for assessing momentum by measuring the speed and changes in price movements. As of now, UNI’s RSI sits at 43.32, which is considered neutral. When RSI values are above 70, it indicates an asset may be overbought, while values below 30 suggest oversold conditions. The current reading at 43.32 falls in the middle, reflecting a balanced sentiment in the market.
This neutral RSI implies that UNI’s price could either consolidate or initiate a new direction. Given the recent cooling in momentum, investors might see this as a time to monitor the market for any shifts in buying or selling pressures before making moves.
Weak Trend Strength: What UNI’s ADX Says
The Average Directional Index (ADX) measures the strength of a trend, regardless of its direction. UNI’s ADX recently fell to 19, down from over 40 a week ago, indicating weak momentum. An ADX reading below 20 signals that the current trend lacks significant strength. This weak ADX reading suggests that the downtrend in UNI’s price may not be strong enough to push the asset into a major sell-off phase, hinting at a potential period of consolidation or even a trend reversal.
Possible Price Movements: What to Watch for Next
Currently, UNI’s short-term EMAs remain above the long-term EMAs, suggesting that the market structure still leans bullish. However, with the recent dip below these EMAs, a bearish crossover could occur if the short-term EMAs cross below the longer-term ones. Such a crossover often signals the beginning of stronger corrections, which could bring UNI to test support levels around $7.5 and $7.1, with the potential to drop as low as $6.6.
On the other hand, if UNI’s trend strengthens and shifts upward, the price may first challenge resistance at $8.7. Breaking through this level could lead to a potential rise toward $9.6, representing a possible 14% increase.
Bottom Line: UNI Holds Potential Amid Uncertainty
Despite current pressure, UNI’s weak ADX and neutral RSI suggest that it might not be ready for a significant downturn. Investors should watch for potential support tests near $7.5 and any movement that could lead to a bullish breakout above $8.7, as these levels will be crucial in determining the coin’s next big move.
