Uniswap Correction Looms: 15% Drop Risk on Overbought RSI

Uniswap's price has been rising steadily, but recent data suggests it may be due for a correction. According to technical analysis, Uniswap's weekly relative strength index (RSI) is above 70, indicating it may be overbought.

The RSI does not guarantee an immediate selloff, as some cryptocurrencies can remain strong while their momentum stays elevated. However, previous sharp rallies on the weekly chart have often been followed by consolidation or multi-week corrections as traders take profits.

One potential downside target for Uniswap is its 200-week exponential moving average (EMA), currently at approximately $7.83. A decline from the current price of around $9.21 toward this level would represent a roughly 15% correction.

If that level fails to hold, Uniswap could extend the pullback toward its 100-week EMA near $6.91. The broader structure remains stronger than earlier this year, with Uniswap trading above its major weekly moving averages after breaking a long-term descending resistance trendline.