Uniswap price seems near a market top, suggests extremely accurate technical indicator

• Uniswap price continues aiming for new all-time highs despite being overextended.
• There is one crucial indicator that has proven to be accurate in the past and is signaling a top.
• Nonetheless, UNI bulls might be able to push the digital asset again ignoring all signals.

Since the beginning of 2021, Uniswap price has established a new high practically every day. The decentralized exchange had a massive 350% rally hitting $20.75 on February 1 and aiming for more. However, several indicators have turned extremely bearish and show UNI is on the verge of a massive correction.

Uniswap price faces strong selling pressure

On the daily chart, the TD Sequential indicator presented a sell signal on January 31 which was followed by another one on the 3-day chart. Additionally, the indicator has shown a green ‘8’ candlestick on the weekly chart which will most likely be followed by yet another sell signal. 

UNI Sell Signals

Additionally, the MVRV (30d) shows that Uniswap price is in the danger zone and poised for a pullback in the short-term. With a lot of selling pressure behind UNI, it seems that the digital asset is bound for a correction.

UNI MVRV (30d)

Using the Fibonacci retracement tool on the daily chart, we can see the nearest price target to be at $17.26 which is the 78.6% Fib level. Falling below this point can push Uniswap price down to $14.5, the 61.8% level. 

UNI/USD daily chart

However, the daily uptrend is still quite strong and bulls only face one barrier at $20.75. A breakout above this point has the potential to drive Uniswap price up to $25.2, which is the 127% Fibonacci level.