Uniswap (UNI) Price Soars Over 10% Following Unichain Announcement

Beincrypto
Updated
Mitrade
coverImg
Source: DepositPhotos

Uniswap (UNI) price raised more than 10% after Uniswap Labs announced the launch of its own Layer-2, Unichain. This surge in price has driven the Relative Strength Index (RSI) to overbought levels, suggesting strong buying momentum.


The rapid increase has brought caution to the market, as overbought conditions may lead to a pullback. Key resistance and support levels will be critical in determining UNI’s next price movements.


UNI RSI Suggests Overbought Conditions


UNI’s RSI is currently at 80, up sharply from 58 in just a few hours after news about Unichain. This quick increase suggests strong buying momentum as investors reacted positively to the news.


RSI, or Relative Strength Index, measures the speed and change of price movements and is used to determine whether an asset is overbought or oversold. It ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 signaling oversold conditions.


Read more: How To Buy Uniswap (UNI) and Everything You Need To Know

UNI RSI.UNI RSI. Source: TradingView


With an RSI of 80, UNI has entered an overbought stage, meaning that the recent price surge may have pushed the asset beyond its fair value in the short term. Overbought conditions often imply that a correction or pullback could be imminent as the buying frenzy cools off.


Investors should be cautious, as prices may become more volatile and susceptible to downward pressure if profit-taking begins. The current high RSI level indicates that UNI’s price rapid rally could soon face resistance, potentially leading to a short-term price correction.


Uniswap ADX Indicates Moderate Trend Strength


UNI’s ADX is currently at 28, up from 19 in just a few hours. This increase in ADX indicates that the strength of the current trend has been gaining momentum. ADX, or Average Directional Index, measures the strength of a trend, regardless of its direction.


It ranges from 0 to 100, with values above 25 generally indicating a strong trend and values below 20 suggesting a weak or nonexistent trend.

UNI ADX.UNI ADX. Source: TradingView.


Even with ADX at 28, it is still below the levels seen in previous months when both uptrends and downtrends were much stronger. Although UNI’s price increased by over 10% in just a day, the current ADX suggests that the trend may not be as strong as it could be.


This indicates that while there is some momentum, it is not yet at the levels that would imply a sustained or particularly powerful movement. Traders should remain cautious, as the current trend strength might not be enough to prevent a potential reversal or significant volatility in the near term.


UNI Price Prediction: EMA Lines Indicate Potential Uptrend


UNI’s EMA lines are currently suggesting a clear uptrend, with the short-term lines positioned above the long-term ones and maintaining a fair distance between them. This configuration typically signals a bullish trend, indicating that recent price action has been favorable.


EMA lines, or Exponential Moving Averages, are a type of moving average that gives more weight to recent prices, making it more responsive to short-term movements. Traders use them to identify ongoing trends and potential reversals by observing the relationship between short-term and long-term moving averages.


Read more: Uniswap (UNI) Price Prediction 2023/2025/2030

UNI EMA Lines and Support and Resistance.UNI EMA Lines and Support and Resistance. Source: TradingView


However, as the ADX shows, the current trend is not particularly strong despite the bullish EMA pattern. If the uptrend continues and strengthens, UNI’s price could test resistance levels at $8.65 and $9.52. Breaking through these resistances could push the price as high as $12, which would be its highest since June 2024.


On the other hand, if the recent news about Unichain is not enough to sustain momentum and the trend reverses, UNI may test support levels around $7.7 and $7.5, with the possibility of falling as low as $6. That would represent a potential 28% decline.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Toncoin Liquidity and User Activity Reviewed by Analyst: Insights on Market ImpactsToncoin (TON) has seen notable changes in its market dynamics so far, driven by supply variations and heightened user engagement across its ecosystem.
Author  NewsBTC
21 hours ago
Toncoin (TON) has seen notable changes in its market dynamics so far, driven by supply variations and heightened user engagement across its ecosystem.
placeholder
Google Cloud Dives Deeper into Blockchain with New BNB Chain and ZetaChain PartnershipOn Tuesday, two blockchain development firms announced new partnerships with Google Cloud: BNB Chain and ZetaChain. BNB Chain received $10 million for its MVB Program, and Google Cloud will validate Z
Author  Beincrypto
Nov 13, Wed
On Tuesday, two blockchain development firms announced new partnerships with Google Cloud: BNB Chain and ZetaChain. BNB Chain received $10 million for its MVB Program, and Google Cloud will validate Z
placeholder
SUI Price Reaches A New All-Time High as TVL JumpsSUI price has just reached a new all-time high, climbing more than 69% in the last seven days. The recent surge is backed by strong technical indicators, including bullish EMA lines and a recovering BBTrend.
Author  Beincrypto
Nov 12, Tue
SUI price has just reached a new all-time high, climbing more than 69% in the last seven days. The recent surge is backed by strong technical indicators, including bullish EMA lines and a recovering BBTrend.
placeholder
Tether Treasury mints another 2 Billion USDT on the Ethereum network for issuanceOn November 11, Tether CEO Ardoino announced through a post on X that Tether’s Treasury had minted 2B USDT on the Ethereum Network to replenish its inventory. Ardoino disclosed that the USDT was authorized but not issued and would be used for chain swaps and issuance on the next request(s).
Author  Cryptopolitan
Nov 12, Tue
On November 11, Tether CEO Ardoino announced through a post on X that Tether’s Treasury had minted 2B USDT on the Ethereum Network to replenish its inventory. Ardoino disclosed that the USDT was authorized but not issued and would be used for chain swaps and issuance on the next request(s).
placeholder
FTX Files $1.8 Billion Lawsuit Against Binance And Former CEO Changpeng ZhaoThe estate of bankrupt crypto exchange FTX filed a lawsuit against Binance and its former CEO, Changpeng Zhao, for alleged fraudulent transfers and starting a campaign to “destroy” its competitor. The $1.8 billion legal action follows another 23 lawsuits filed last Friday to claw back part of the ill-spent funds. Related Reading: Cardano Founder Reveals […]
Author  Bitcoinist
Nov 12, Tue
The estate of bankrupt crypto exchange FTX filed a lawsuit against Binance and its former CEO, Changpeng Zhao, for alleged fraudulent transfers and starting a campaign to “destroy” its competitor. The $1.8 billion legal action follows another 23 lawsuits filed last Friday to claw back part of the ill-spent funds. Related Reading: Cardano Founder Reveals […]