Most alternative tokens have recorded unprecedented growth as the crypto market recovers from the lows seen amidst the June crash. Some of these alts include Uniswap, Loopring and VeChain. Uniswap (UNI), in particular, has recorded a substantial surge within the last few weeks. The impressive action saw UNI appearing ready to outshine some altcoins in ranks.
‘UNI’nterrupted Upside
Uniswap responded well to the June crash that saw it declining beneath $3.6, taking less than 60 days to recover the recorded losses. The timeframe saw it gaining over 148.83% to explore its current value areas of $9.005. Furthermore, UNI recovered from the dips seen in May and seems prepared to invalidate April’s losses. Nevertheless, the altcoin might not have what it takes to overcome the $10-level.
That is because its buying momentum, which supported the altcoin’s upside during the upward journey, will hit saturation soon. The reducing UNI supply on exchanges might support such narratives. This metric hovered at 7-month lows at 59 million during this publication. Investors have purchased more than 4.2M UNIs worth over $37 million within the previous month.
Also read:Though this accumulation continued till this publication, it may stop soon. That’s because the RSI (Relative Strength Index shows the token is wavering within the overbought region following the FOMO triggered by the latest rally. While most investors will be profit-hunting traders, they might sell soon, translating to an ultimate price action drop.
Furthermore, that might happen sooner than anticipated. Uniswap’s on-chain liquidations have remained somewhat high within the past few weeks. Meanwhile, near-term liquidations remained a concern in July, with short liquidations hitting nearly $3 million at some point. Also, the volume maintained fluctuations since then.
New investors interested in joining UNI’s space might adopt cushion as the altcoin seems primed for decline soon. The altcoin loses steam following the latest massive upside push. Moreover, that’s usually after a token sees an enormous surge. Meanwhile, traders can follow broad market cues for possible invalidations.
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