Uniswap (UNI) why is the price where it was 2 weeks ago

Uniswap (UNI) why is the price where it was 2 weeks ago

Uniswap Automated Liquidity Protocol [UNI] moved into position two weeks ago, although many of its counterparts recorded good gains. Despite making big waves a week ago, it is surprising to see the price of UNI in its exact area during the speculative run of the crypto market.

At press time, UNI is trading at $6.54. The price performance of the cryptocurrency is particularly so low as it cannot share both the gains of Bitcoin [BTC] and Ethereum [ETH] on the leaderboard. In contrast, Curve Finance [CRV], for example, has recorded an 11% gain over the past seven days.

Coming down

UNI is not only price inefficient, but its position on Total Value Locked (TVL) is also at stake. According toDeFiLlama, Uniswap's TVL has lost 13.63% of its value in the past thirty days. In addition, despite the fact that TVL was $6.29 billion on August 10, the project's chain does not seem prepared to face the obstacle of maintaining fourth place on the rankings.

At press time, Uniswap's TVL is $5.65 billion.


Source: DeFiLlama

Currently, while other leading DeFi protocols are also falling according to TVL, Uniswap has recorded the most significant decline. Using Curve as a reference point, the second value takes less than 10% of its TVL value.

Where to go next - Impede or promote?

The prevailing dynamics can be confusing for investors. Therefore, it would be wise to estimate the exact position of the UNI. Online data platform Santiment recentlyrevealedthat UNI's Market Value to Actual Value (MVRV) is not at its best. With a value of -6.04, the exercise value is clearly higher than the market value. In this case, UNI did not generate enough profit for investors to sell.

In terms of volume, the initial rally to 152.1 million looks to have taken a step back. However, concluding that UNI's demise in the short term is inevitable would be erroneous.

Source: Santiment

Looking at the price charts of altcoins seems to emphasize the same. For example, based on a cryptocurrency's Relative Strength Index (RSI), UNI only works in rows after an overnight old level leads to a reversal.

However, the RSI has not completely turned downtrend yet. In fact, looking at the Balanced Volume (OBV) shows that UNI has actually dropped in price every time liquidity is pumped into its ecosystem. OBV, at press time, is 201.08 million— One point lower than it was at the start of the week.

Source: UNI/USDT, TradingView


Sep 11, 2022

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