UNI, the native token of the Uniswap protocol, rose nearly 10% in the last 24 hours, but the rally is showing clear signs of exhaustion. The token is trading above its upper Bollinger Band, with the Relative Strength Index (RSI) at 81.59 and a dead MACD histogram — a combination that typically signals a momentum spike has run its course.
Why the rally looks overheated
When price pushes above the upper Bollinger Band, it means the move has stretched far beyond the average range of recent trading. An RSI above 80 is considered overbought territory, and the MACD histogram turning flat or negative while price stays elevated often points to fading buying pressure. For UNI, these three indicators are lining up at the same time.
The token's rapid climb has left it vulnerable to a correction. Technical analysis suggests the next move is likely a pullback toward $5.81, a level that could act as support before any further upside is attempted.
What the pullback could look like
The expected retracement to $5.81 would represent a meaningful drop from current levels, but it wouldn't erase the recent gains entirely. If that support holds, the token could then make another run at $6.90, a price point that has been watched as a potential resistance zone.
Traders often look for a reset after an overextended move, and the $5.81 area may be where buyers step back in. Until then, the momentum that drove the 10% surge appears to be fading.
What to watch next
The key question is whether UNI can hold above $5.81 on a pullback. A clean bounce from that level would set up a test of $6.90, while a break below could open the door to deeper losses. The next few trading sessions will show whether the current spike was a one-off or the start of a more sustained trend.
