Uniswap Price Prediction: UNI at risk of a major correction to $16, on-chain metrics suggest

• Uniswap price had a massive 350% rally in 2021, reaching a high of $20.75.
• The digital asset could be poised for a correction as it is overextended.
• Several on-chain metrics suggest UNI is bound to see a pullback sooner than later.

Uniswap has reached a market capitalization of over $5.5 billion and has been climbing the ranks of CoinMarketCap to hit 13th. UNI was up by more than 1,000% since its all-time low of $1.75 in November 2020.  

Uniswap price can quickly fall towards $16

The MVRV (7d) indicates that Uniswap price has been inside the risk zone for the past week. This often leads to a correction in the short-term, as it happened on January 30 or January 18.

UNI MVRV (7d)

Even more worrying for the bulls is the percentage of UNI tokens inside exchanges, which had a significant spike from 6.3% on January 30 to 6.64% currently. This indicates that perhaps investors are ready to sell and take some profits in the short term.

UNI tokens on exchanges

The In/Out of the Money Around Price (IOMAP) chart shows a robust support level between $18.24 and $18.8, where 122 addresses purchased 7.22 million UNI tokens. A breakdown below this point can drive Uniswap price down to $16 as there is weaker support below.

UNI IOMAP chart

However, Uniswap is inside a major uptrend and could continue climbing higher. On the 1-hour chart, the TD Sequential indicator has presented a buy signal that could push Uniswap price towards $20 again.

UNI/USD 1-hour chart

According to the IOMAP chart, there is feeble resistance until the area between $19.47 and $19.7 with 3.55 million UNI in volume. A breakout above this point can easily drive Uniswap price above $20. 

UNI/USD daily chart

The Fibonacci Retracement indicator shows that Uniswap price will climb to $26 at the 127% level if there is a breakout above $20. The next price target would be $32.4 which is the 168% level.  

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