Uniswap (UNI) Price Drops as Whale Investors Buy the Dip
The price of Uniswap (UNI) dropped to a weekly low of $5.50, resulting in losses nearing 17% for August 2023. However, on-chain data indicates that bullish whales are taking advantage of the dip, potentially boosting investor confidence in the Uniswap ecosystem.
Key Points:
- Whale transactions involving UNI have increased significantly this week.
- Uniswap recorded a more than 1,000% increase in whale transactions compared to the previous week.
- Institutional investors are making big bets on Uniswap again, providing market liquidity and boosting retail investor confidence.
- The increase in whale transactions could facilitate a price rebound for UNI in the near future.
UNI Approaching Oversold Territory
The UNI price currently sits below $5.60, with a 16% loss in market value for the first half of August. On-chain data suggests that UNI is now in the oversold territory, indicated by a significant decline in the Network Value to Transaction Volume (NVT) ratio. Despite the drop in market prices, the network is still experiencing a healthy volume of economic activity, which could be a bullish signal for a price rebound once sell-pressure subsides.
UNI Price Prediction: Consolidation Above $5
Based on the analyzed on-chain indicators, the UNI price is likely to enter recovery mode in the coming days. Green signals from Uniswap and the presence of initial support around the $5 range indicate a potential rebound. Additionally, the In/Out of Money Around Price (IOMAP) data supports this optimistic stance, showing a significant number of addresses buying UNI at an average price of $5.40. However, if the support level cannot hold, a new buy-wall at $5 could form. On the other hand, if resistance at $7 is broken, Uniswap’s price could head towards that level.
Hot Take:
The increase in whale transactions and the oversold territory suggest that UNI may have a chance for a price rebound. The support at $5 and the presence of bullish indicators provide hope for investors. However, the resistance at $7 may pose a challenge for further price growth.
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