The Uniswap exchange rate (UNI) has pulled back about 17% from the local high of $6.4 recorded on April 14. However, onchain metrics bode well for a rebound
UNI, the native token of decentralized cryptocurrency exchange (DEX) Uniswap, hit a high of around $6.5 in April, but then launched a 2-week downtrend.
However, onchain indicators suggest that the coin is probably preparing for a rebound.
Hodlers may soon stop selling
The Uniswap rate sagged 17% from its highs by the end of April amid a general weakening of the altcoin market.
However, if onchain metrics are to be believed, investors in UNI may not be preparing for more losses.
The Market-Value Realized-Value (MVRV 30d) indicator from Santiment suggests that most investors in UNI are now carrying unrealized losses.
The Market-Value to Realized-Value (MVRV 30d) indicator from Santiment suggests that most investors who bought UNI in the last 30 days now have unrealized losses of more than 7%.
The MVRV chip indicator calculates the ratio of market and realized value of coins. Values above one indicate a higher indicator of market capitalization.
So, for example, the value of 2 will mean that the market capitalization is twice the capitalization realized. Very high figures indicate an overvalued market.
Meanwhile, a low indicator, as in the chart above, suggests that the market is undervalued. This offers investors favorable buying and entry opportunities.
In addition, the current level of unrealized losses of UNI hodlers is critically high. In addition, the current level of unrealized losses of UNI hodlers is critically high.
To avoid fixing these losses, they may choose to stop selling the coin soon. Such easing of bearish pressure could be enough to trigger a bounce.
Uniswap attracts new users
Another bullish factor is the recent increase in new users joining the Uniswap network. According to Santiment, it has recorded a steady increase over the last 10 days.
While 183 new wallets appeared in the network on April 22, on May 1 the figure was 358.
Stable attraction of new users is a favorable factor for the potential growth and development of the Uniswap ecosystem. Accordingly, it could also support the growth of its native token.
UNI forecast: whether to expect a rebound to $6.0.
According to IntoTheBlock’s Global In/Out of Money stats, UNI could soon move above $6.0.
As a reminder, this metric tracks addresses that are close to breakeven and reflects the distribution of hodlers along the average buy price lines.
However, in order to do that, the bulls first need to overcome the resistance area of $5.38. About 9,400 investors have settled here, having previously bought about 6 million tokens at this average price.
The Uniswap hodlers could expect to rally toward $6.03.
If successful, Uniswap hodlers can expect to rally toward $6.03. This is a stronger resistance, where 11,500. addresses hold 13.7 million tokens.
The path to it is covered by the $6.0 barrier. Here the hodlers, at $5.94 and $6.03, could be interesting to sell.
Bearish sentiment may intensify if UNI breaks below $5.18.
The price can be supported by 4 thousand investors, who bought 1.66 million coins at these levels. If this area is broken through, the market may head to $4.87 and further to $4.50.