Uniswap's Price Surge May be Exhaustion, Not Strength
Uniswap's (UNI) price surged nearly 10% in 24 hours, but according to technical analyst Timothy Morano, this may be a sign of exhaustion rather than strength. UNI is now trading above its upper Bollinger Band with an RSI reading of 81.59 and a dead MACD histogram.
The chart looks like 'a runner who just sprinted 400 meters and is gasping at the finish line', with price at $6.33 having blown through the upper Bollinger Band, which tops out at $6.01. The Stochastic oscillator is pinned at 98.37, essentially kissing the ceiling.
Morano notes that every single moving average - SMA 7 at $5.19, SMA 20 at $4.30, SMA 50 at $4.03, and SMA 200 at $3.51 - is well below current price, indicating a trend reversal. The absence of a narrative pile-on from influencers and analysts is also seen as a bearish signal for continuation.
Looking ahead, Morano forecasts three possible scenarios: a pullback to the $5.81 support zone (65% probability), a push towards $6.62 and eventually $6.90 resistance (20% probability), or a flush through $5.81 to the $5.29 strong support level (15% probability).