The Uniswap value seems to be nearing a high of the market, suggesting a particularly correct technical indicator
- Despite being overstretched, the Uniswap price is still aiming for new all-time highs.
- There is one crucial indicator that has proven to be accurate in the past and that signals a top.
- Still, UNI bulls might be able to push the digital asset again without paying attention to all the signals.
Since the beginning of 2021, the Uniswap price has hit a new high practically every day. The decentralized exchange saw a massive 350% rally on Feb. 1, reaching $ 20.75 and aiming for more. However, some indicators have become extremely bearish, showing that UNI is on the verge of a massive correction.
The Uniswap price is under heavy selling pressure
On the daily chart, the TD Sequential indicator showed a sell signal on January 31st, followed by another on the 3-day chart. In addition, the indicator has shown a green ‘8’ candlestick on the weekly chart, which is most likely followed by another sell signal.
UNI sell signals
In addition, the MVRV (30d) shows that the Uniswap price is in the danger zone and is about to retreat in the short term. Given the huge selling pressure behind UNI, the digital asset appears to be undergoing a correction.
UNI MVRV (30d)
Using the Fibonacci retracement tool on the daily chart, we can see that the next price target is at $ 17.26, which is the Fib level of 78.6%. If you go below this point, the Uniswap price can drop to $ 14.5 (61.8%).
UNI / USD daily chart
However, the daily uptrend is still quite strong and bulls face just one barrier at $ 20.75. A breakout above this point has the potential to push the Uniswap price to $ 25.2, which is the Fibonacci level of 127%.
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