Uniswap (UNI) Sees 150% In Last Seven Weeks Amid Strong Whale Accumulation, What’s Next?

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UNI, the native token of Ethereum-based decentralized exchange Uniswap, has registered a strong price rally in the last seven weeks. The UNI price has gained by more than 150% in the last seven weeks putting it once again among the ranks of the top fifteen cryptocurrencies by market cap.

On-chain data provider Santiment shows that the recent UNI price rally has been due to strong whale accumulation and rising address activity.

As per Santiment, the daily active addresses for Santiment have surged to more than 1,100. This shows that the price action could be more sustainable as it’s followed up by strong address activity.

Courtesy: Santiment

Uniswap Whale Accumulation

Since May 2022 crash, Uniswap whale addresses have been accumulating a large number of UNI tokens in heavier percentages. The whale addresses with 100k to 1m UNI has seen a large accumulation spike in the last two weeks. Santiment reported:

Speaking of whales, the amount of large transactions (which we deem to be transactions valued at $100k or more) are rising back to May levels as well. We can clearly see the major clump of big whale transactions that began forming one week ago, just prior to the major price rise up to $9.69.

Courtesy: Santiment

Furthermore, the active average trader returns for Uniswap have also shot up. The 30-day MVRV is currently up by more than 22.5%. Santiment notes that this is well above the β€˜Danger Zone’ of +15% or more.

However, Santiment asks new investors to remain cautious after the sharp price surge recently. It notes:

Mid-term trading returns beginning to overflow, the good news is that long-term traders (in the 365-day MVRV) are still well under water. This means that there may be an upcoming downturn in the next week or two for UNI, but its future for the long-term still looks to be undervalued.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source link By Bhushan Akolkar

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