Despite being one of the hottest tokens last week, the real UNI price struggle has begun this week. Uniswap’s native token is “free money” for a lot of people, and the price is taking major hits because of it. Remaining above $3.5 will be a tough order, especially with Bitcoin looking very weak once again.
UNI Price Momentum Sours
It was a wild end of the week for UNI holders last week. With the price suddenly starting at $1.03 and shooting up to $8.4 in quick succession, there was ample bullish sentiment. Fast forward to today, and most of that momentum has evaporated once again. The UNI price is heading back to where it started, unless something drastic happens. This is a governance token, although it can be used for liquidity mining across several DeFi platforms to boot.
Looking at the past 7 days, a lot has changed for UNI. The price decline has been virtually non-stop, and shows no signs of slowing down. In the past 24 hours, another 22% of the UNI price was wiped off the boards. With over 120 million tokens in circulation, it was to be expected this trend would occur. The market cap is now below $500 million again, and may trend lower in the coming hours.
Is There any Social Sentiment?
The good news for UNI price watchers is how the token continues to generate ample buzz across social media. Over 122,000 posts have been made in the past 7 days. Combined with 44 news articles and over 40,600 shared links, things are not looking all that bad.
The bullish sentiment remains above 50% as well, which offers some sort of long-term hope. UNI Also has a social dominance of 9.43%, which is rather impressive. That being said, these statistics may taper off very quickly if the token price doesn’t go up again.
UNI Price and Overall Liquidity
One contributing factor to a cryptocurrency or token is its overall liquidity. Having more liquidity is a good thing, but it can also trigger a lot more volatility in quick succession. For Uniswap, its current liquidity sits just below $600 million, putting it in 29th position on Messari.
This is not terrible, considering how the project isn’t too far off from Ontology and Ethereum Classic. However, with Bitcoin and Ethereum still going in the red today, one has to wonder if and when markets can begin to recover. For now, that seems to be out of the question, especially where the UNI price is considered.
Technical Indicators Don’t Lie
Keeping all of the above in mind, it is worth looking into the technical indicators. Although UNI was only released recently, there are some interesting trends apparent already. Looking at the 1H chart, the BA20 remains well below the MA50, although the decline is growing slightly less steep. Considering how this happens after a widening Bollinger Bands trend, the UNI price can show some sign of recovery in the short-term future.
It is also worth noting the RSI is well oversold right now. On an hour-to-hour basis, this may recover fairly quickly. Turning that momentum into a sustainable uptrend, will be a different matter. Nothing is impossible in the crypto world, but there’s no point in getting one’s hopes up either.
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