Uniswap: Does the recent rise in UNI attract ETH whales?

Uniswap: Does the recent rise in UNI attract ETH whales?

Uniswap [UNI] made inroads into major cryptocurrencies held by the top 100 whales Ethereum [ETH] recently. According to the popular whale-watching company, WhaleStats, UNI has eliminated competition from other smart contract protocols for the spot. 

Furthermore, the auto-liquidation protocol is also part of the smart contracts most used by the top 1000 ETH whales in the last 24 hours. 

Is UNI really impressive?

The development raised the UNI volume held by whales to $403,502. Additionally, UNI increased its stake among ETH whales by 1.56% to a value of $40.35 million.

Source: WhaleStats

However, UNI seems unimpressed by the growing interest in whales. According to Santiment, network growth in the Uniswap ecosystem has been declining since September 17, when it reached 1,084. 

Since the last 24 hours, UNI's network growth rate continued to slow down to 317. In terms of numbers, UNI was lackluster, with the last notable increase in July. At press time, Santiment revealed the amount to be $115.68 million. Although it was 2.37% higher than the previous day, this is considered an almost negligible increase.

Source: Emotions

In terms of market to net value (MVRV), it's not a small disaster. Based on Santiment data, the 30-day MVRV rate is -5.399%. This current position suggests that UNI investors may not be selling their holdings any time soon. Also, at the current price, the holders lose more than they gain.

On the plus side, the supply on exchanges is increasing. In fact, it's been around since early September and is 62.55 million at press time. Although there is no indication that UNI will continue to trend in the coming weeks.

Source: Emotions

Should you sell or not?

However, UNI's $5.99 price tag at the time of publication seems to be enjoying a positive effect from whale activity. Four hours of resolution suggests that there are several impediments involved.

According to the Directional Movement Index (DMI), UNI is in a great position for a sustained rally. With a positive (green) DMI at 25.13 and a negative (red) at 13.49, investors can assume that green stocks are safe. 

Unfortunately, the average directional index (ADX) seems to have other plans. When +DMI is in an uptrend, ADX (yellow) shows that the directional force is not strong enough to propel the rally.

Source: TradingView


Sep 25, 2022

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