Uniswap price June-July rally of 65% undone as UNI falls by 25% in a week

• Uniswap price is trading at $4.67 after crashing by 25% in the last seven days.
• The 30-day average return on UNI investment has hit -23%, with the MVRV ratio falling into the opportunity zone for the first time since November 2022.
• The recent crash of 146 million UNI worth $681 million, falling victim to losses in less than a month.

Uniswap price is taking the spot of one of the biggest losers of the month, with the altcoin’s losses extending with every passing day. However, a key indicator suggests that UNI’s bearishness might be reaching the point of saturation, leaving a reversal as the likely option.

Uniswap price in the last week

Uniswap price trading at $4.67 is down by more than 25% in the span of just seven days, adding to the decline in the past three weeks. Since the beginning of the month, the market price of the asset has contracted by over 30%, threatening the recent rally witnessed by investors.

Back in June and July, Uniswap price, in accordance with the rest of the market, shot up by almost 65%, pushing its price from $4.01 to $6.55. But come August, this increase has been nearly wiped out, with UNI standing less than 14% away from falling back to pre-June rally levels.

UNI/USD 1-day chart

This resulted in significant losses to traders and investors as not only did long positions get liquidated, but the UNI held between $6.55 to the trading price also fell victim to the market’s bearishness.

In all, about 146 million UNI worth more than $681 million lost its profitability. Another 18 million UNI is on the verge of joining the chunk of losses that would happen should Uniswap price lose the support of $4.50.

Uniswap GIOM

However, there is one positive signal emerging from the bearishness, which is the result of excessive selling by the investors. The Market Value to Realized Value (MVRV) ratio plummeted, bringing the 30-day average return on UNI investment to -23%. 

Consequently, the altcoin fell into the opportunity zone, an area historically associated with recovery, which usually occurs due to the exhaustive selling of investors. In the case of Uniswap, this area lies below 16% and was last visited nine months ago, back in November 2022.

 Uniswap MVRV ratio

A similar observation can be made on the Relative Strength Index (RSI), which is currently in the oversold zone below 30.0, suggesting a potential recovery is underway. Uniswap price would have a solid chance of regaining the losses should it manage to flip the resistance level marked at $5.02 into a support floor.

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