The price action across the entirety of the cryptocurrency market over the past few days has not exactly aligned with the interest of investors. The majority of cryptocurrencies were unable to successfully record an increase in price, and Uniswap (UNI) was not an exception.
In spite of its poor performance, LunarCrush has found that UNI continues to be a topic of discussion in the cryptocurrency industry, as its social dominance has increased over the past week. As a result, this reflects its widespread appeal.
As of the time this article was written, the price of UNI had dropped by more than 3% over the course of the previous week, and it was currently trading at $5.18 with a market capitalization of over $3.95 billion. Despite the fact that UNI has maintained its popularity, market indicators have shown that investors should exercise extreme caution because it is possible that circumstances will deteriorate in the days ahead.
The Relative Strength Index (RSI) for UNI showed a downward trend and was located well below the neutral mark, which is a sign that negative price movement is imminent. In addition to this, UNI’s On Balance Volume (OBV) also moved in the same direction, which further increased the likelihood that prices will continue to fall.
Bearish signs were also exhibited by the Exponential Moving Average (EMA) Ribbon. This was further supported by the data provided by the Bollinger Bands, which showed that the price of UNI was moving into an area with a high degree of volatility.
UNI was able to gain popularity among whales despite having poor performance. On December 23, it was one of the smart contracts that was used the most by the top 500 Ethereum whales, making it one of the most used smart contracts overall.
In a related development, a number of the on-chain metrics did not back up the notion of a price increase. Investors may have reasons to be concerned about this matter. For example, UNI’s development activity has decreased, which is generally a sign that things are going in the wrong direction.
Over the course of the previous week, there was a slowdown in both the expansion of UNI’s network and the funding rate on Binance. This gave the impression that the price of UNI could drop even further. Despite this, the Market Value to Realized Value (MVRV) Ratio increased, which provided investors with grounds for optimism.
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