The price of Uniswap (UNI) has increased nearly 20% in just the past 24 hours, reaching a three-year high. This strong price surge has pushed UNI's price close to breaking key resistance levels, opening up potential for greater growth.
Indicators such as RSI and BBTrend indicate that momentum is improving, with the potential for continued price increases if optimistic sentiment is maintained. However, holding strong support at $14.5 will play a crucial role in sustaining the upward trend and avoiding a deeper correction.
The RSI of UNI remains below the overbought zone
The RSI of Uniswap has risen from 33 two days ago to 67, reflecting a strong increase in bullish momentum. This rapid increase indicates that the asset has shifted from an oversold state to a neutral to positive zone, consistent with the recent price recovery.
The current RSI level indicates strong buying activity, but it is approaching the overbought threshold, where bullish momentum may face resistance if buying pressure diminishes.
RSI index of UNI | Source: TradingView
The Relative Strength Index (RSI) measures the speed and change of price movements to evaluate overbought or oversold conditions. Values below 30 indicate oversold conditions, signaling potential buying opportunities, while values above 70 suggest overbought conditions that may lead to price corrections.
If the RSI of UNI exceeds the 70 level and maintains above this level without an immediate correction, the price of Uniswap may continue to rise. Historical trends show that when the RSI of UNI remains above 70 for an extended period, it often precedes significant price rallies before corrections occur, suggesting short-term growth potential.
The BBTrend of Uniswap is currently negative
The BBTrend of UNI has recovered to -0.82 from -2.47 a few hours ago, indicating an improvement in price momentum. This change suggests a diminishing selling pressure, hinting at the possibility of stabilization or even a reversal to an upward trend.
Although the BBTrend remains in the negative zone, the upward movement reflects increasing support and the potential return of buying demand.
BBtrend index of UNI | Source: TradingView
BBTrend, or Bollinger Band Trend, measures the strength and direction of price volatility based on Bollinger Bands. Positive values indicate bullish momentum, while negative values signal bearish conditions. The BBTrend of Uniswap has remained positive since November 24, peaking at 22.6 on December 9, before turning negative around December 11 and 12.
The recent recovery from -2.47 to -0.82 suggests that selling momentum is weakening. If the BBTrend turns positive, UNI's price could witness a stronger rally.
UNI price prediction: Will it rise back to $25 after 3 years?
Currently, UNI's price is holding strong support around $14.5, which could be a crucial area for price stabilization in case a downtrend emerges. If this support level is not maintained, the price could drop further, with $13.5 being the next noteworthy level.
These support zones are very important to prevent deeper corrections and maintain market confidence during periods of selling pressure.
Conversely, if the current upward trend is maintained, UNI's price may soon test the resistance level of $19.47, with the potential to rise to $20. Breaking these levels would mark the highest price of Uniswap in three years, indicating strong bullish momentum.
UNI/USDT chart on the 4-hour timeframe | Source: TradingView
A rise to $25 would represent the highest price since November 11, 2021, indicating the potential return to a long-term upward trend if this trend continues to strengthen.