Uniswap (UNI) has experienced an impressive surge, climbing nearly 20% in just 24 hours, reaching its highest price in three years. This surge has surges excitement among investors, pushing UNI closer to breaking key resistance levels that could pave the way for even greater gains. But, as with all rallies, questions remain: will this momentum continue, or is UNI nearing its peak?

Rising Momentum: RSI and BB Trend Indicate Strength

Several key metrics suggest that the recent rally in UNI is not just a short-term spike. Relative Strength Index (RSI) and BBTrend are both showing signs of increasing momentum, though they also point to potential challenges ahead.

• RSI: The RSI for UNI has high from 33 just two days ago to 67, indicating a sharp rise in bullish sentiment. The RSI measures the speed and magnitude of price movements and helps identify overbought or oversold conditions. With UNI’s RSI now in the neutral-to-bullish range, it signals strong buying activity. However, it’s approaching the overbought zone (above 70), which could limit further gains if momentum starts to slow down. Historically, when UNI’s RSI stays above 70, the price often continues to rise, but a pullback typically follows.
• BBTrend: The BBTrend, a measure of price movement strength based on Bollinger Bands, has also shown improvement. It recently recovered from a low of -2.47 to -0.82, signaling a shift away from bearish pressure. While still in negative territory, this recovery indicates that the downward momentum may be weakening, and buying interest could be returning. If the BBTrend turns positive again, UNI might see a more substantial rally.

Key Price Levels: Resistance and Support

For UNI to maintain its upward trajectory, several key price levels must hold. Currently, $14.5 serves as a critical support level, preventing a deeper correction. If this support holds, it could stabilize UNI’s price during any selling pressure. On the other hand, if the price drops below $14.5, $13.5 could become the next significant support zone.

On the bullish side, $19.47 is the immediate resistance level to watch. If UNI manages to break through this level, it could quickly approach the $20 mark, which would mark a three-year high for the token. Beyond that, the next target would be $25, a price point not seen since November 2021, signaling a return to long-term bullish territory.

Can UNI Continue Its Uptrend?

While the technical indicators show a strong rally, there are risks to consider. UNI’s RSI is nearing overbought territory, which suggests that the buying pressure may begin to slow down. Additionally, while the BBTrend is improving, it has not yet flipped positive, leaving some uncertainty about the sustainability of the uptrend.

However, if the momentum continues, UNI could test resistance at $19.47 and potentially climb toward $25, representing a significant price increase. Such a move would mark a substantial return to the bullish sentiment seen in late 2021, highlighting the potential for continued gains if market conditions remain favorable.

Looking Ahead: What’s Next for Uniswap?

The recent surge in UNI’s price has undoubtedly captured the attention of the crypto community. With strong support at $14.5 and the possibility of a breakout above $19.47, the next few days could be crucial in determining whether this rally will continue or face a correction. For now, the key will be watching the RSI and BBTrend for signs of further momentum or a potential pullback.

If the momentum holds and UNI can break through critical resistance levels, the path toward $25 seems increasingly likely. However, traders should remain cautious, as the market’s volatility could lead to sudden shifts in sentiment.