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UNI was trading at $28.46, ranking in the top ten cryptocurrencies; the price of this alt has increased by 9 percent in the last 24 hours. UNI is also 21.81 percent off its all-time high of $36.41. The market capitalisation has risen by 8.57 percent as a result of heavy trade. Despite the market capitalisation, exchange volume has fallen by more than 40%.
According to the share chart above, the price has swayed and moved like a rollercoaster over the last week. Uniswap’s official V3 launch last week fueled speculation of a price increase; however, the price fell after reaching a high of $35.8.
After the V3 launch, on-chain momentum has been positive, with massive HODLers accounting for 91 percent of the concentration. 75% of these HODLers purchased the asset within the last 12 months, and 25% purchased the asset within the last month. Retail dealers, as well as institutions, have been purchasing and accumulating. The market action has developed many support zones that are based on the exchange supply.
Prior to the current market activity, price volume divergence was a big source of concern because it suggested that there were less customers and that demand was being diminished. The price rally would have been more healthy if the high price was followed by high volume, and consumers jumped in to keep the market fueling.
When the news of Uniswap V3 increased interest, it triggered a price rally at the beginning of 2021, when Uniswap devs increased operation and updates.
Retail traders’ price forecasts are almost the same as they were after the launches in early 2021. Though Ethereum has a similar story, progress updates and releases have been postponed. The expectation of a price increase near the launch is lost in the decrease in volume and demand as a result of the weeks of delay.
In the case of Uniswap, the hype and optimism coincided with an increase in trade volume and price as traders flocked to Binance, Huobi Global, and OKEx’s USDT markets, the top three contributors to Uniswap’s trade rate. According to coinmarketcap.com reports, analysts believe that ETH is undervalued even at its current price of $1645.
As compared to UNI, analysts found the altcoin overpriced after the previous two market rallies in Q1 of 2021. Following a rise in selling pressure and a correction below $24, the correction to the current price level was deemed a correction to the neutral level and critical to UNI’s price rally, since it may appear to become overbought.
UNI is not currently on a rollercoaster; but, if the trend persists and trading volume on spot exchanges rises, the market can re-approach the ATH by the end of the weekend.