Uniswap drops 5% despite Bitcoin rally momentum

Uniswap (CRYPTO:UNI) has faced recent price pressure, declining by 5% over 24 hours and down 5.24% over the past week, even as Bitcoin (CRYPTO:BTC) continued its upward movement.

This performance reflects a shift in UNI’s momentum, with technical indicators suggesting a cautious outlook for traders.

The price drop saw UNI slip below its short-term Exponential Moving Averages (EMAs), signaling reduced buying strength.

Although the EMAs retain a bullish structure, the price movement indicates that buyers may be stepping back, leaving the current trend vulnerable to further declines.

Analysts caution that a potential reversal could be in the cards, but the trend remains uncertain.

UNI's Relative Strength Index (RSI), a tool for assessing price momentum, hit 85 on November 7, fueled by a rapid 50% price increase within 24 hours.

The RSI has since fallen to 43.32, indicating a decrease in momentum and placing the asset in a neutral state.

This range suggests that while the market is neither overbought nor oversold, the previous strong momentum has cooled.

The Average Directional Index (ADX), measuring trend strength without direction, currently reads 19, significantly lower than the previous week's value of over 40.

An ADX below 20 points to weak trend strength, implying that the downward pressure on UNI is not robust.

This suggests the possibility of price consolidation rather than a continued sharp decline.

At the time of reporting, the Uniswap (UNI) price was $8.03, and the Bitcoin price was $87,788.08.