Uniswap price nearing a market top, suggests extremely accurate technical indicator
|- Uniswap price continues aiming for new all-time highs despite being overextended.
- There is one crucial indicator that has proven to be accurate in the past and is signaling a top.
- Nonetheless, UNI bulls might be able to push the digital asset again ignoring all signals.
Since the beginning of 2021, Uniswap price has established a new high practically every day. The decentralized exchange had a massive 350% rally hitting $20.75 on February 1 and aiming for more. However, several indicators have turned extremely bearish and show UNI is on the verge of a massive correction.
Uniswap price faces strong selling pressure
On the daily chart, the TD Sequential indicator presented a sell signal on January 31 which was followed by another one on the 3-day chart. Additionally, the indicator has shown a green ‘8’ candlestick on the weekly chart which will most likely be followed by yet another sell signal.
UNI Sell Signals
Additionally, the MVRV (30d) shows that Uniswap price is in the danger zone and poised for a pullback in the short-term. With a lot of selling pressure behind UNI, it seems that the digital asset is bound for a correction.
UNI MVRV (30d)
Using the Fibonacci retracement tool on the daily chart, we can see the nearest price target to be at $17.26 which is the 78.6% Fib level. Falling below this point can push Uniswap price down to $14.5, the 61.8% level.
UNI/USD daily chart
However, the daily uptrend is still quite strong and bulls only face one barrier at $20.75. A breakout above this point has the potential to drive Uniswap price up to $25.2, which is the 127% Fibonacci level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.