- Uniswap holds above the ascending channel’s lower boundary support on the daily chart.
- UNI/USD might resume the uptrend if the price closed the day above the 50 SMA and 100 SMA on the 4-hour chart.
- A slump in network growth suggests that recovery could take a while before materializing.
Uniswap received a beating from the bears just like most of the cryptocurrencies in the market on Thursday. Investors rushed to take profit as prices tanked. UNI seems poised for recovery from a technical perspective, but on-chain metrics paint a contrary picture.
Uniswap jumpstarts the uptrend
Following the 37.7% loss from the highs achieved in November, Uniswap has recovered from the newly established support at $2.9. The decentralized finance (DeFi) token is trading at $3.4 at the time of writing while holding above the ascending parallel channel’s lower boundary support.
On the upside, resistance is anticipated at the channel’s middle boundary, likely to delay the breakout eying $4.5. In case of another correction from the prevailing market value, UNI may seek refuge at the 100-day SMA. The buyer congestion could also be strong enough to attract immense buying volume to restart the uptrend.
UNI/USD daily chart
The Relative Strength Index on the 4-hour chart has reinforced the bullish optimism after rebounding from the oversold area. A consistent uptrend towards the midline and the overbought region will signal more buyers to join the market, thereby creating enough volume to sustain the anticipated bullish price action.
Some delay is expected at the 50 SMA and the 100 SMA, but if broken, the price may rally quickly to $4.5. Holding above the 200 SMA may also protect the uptrend by ensuring stability is retained.
UNI/USD 4-hour chart
Santiment, a leading provider of on-chain metrics, shows a significant drop in Uniswap’s network growth. This metric tracks the number of new addresses joining the protocol daily. It is used to illustrate user adoption in the period and foretell if the cryptocurrency project is gaining momentum.
%20[08.05.08,%2027%20Nov,%202020]-637420511246912465.png)
Uniswap network growth
In the last seven days, the number of new addresses decreased significantly. The addresses topped 2,300 on November 17 but slumped to 1,146 by November 26, representing a 50% decline. The downtrend in network growth is a red flag for price growth in the short term. In other words, UNI may take longer to recover from the dip.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60
Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Solana could cross $200 if these three conditions are met
Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.
ALT, WLD, ENA, ID set for $200 million token unlocks next week
The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.