Uniswap (UNI) appears to have hit a crucial tipping point in terms of its market valuation. The altcoin declined 17%, across 2 weeks, to the $5.3 mark. In spite of this, optimistic signs, such as the steady increase of new joiners to the Uniswap network, indicate that UNI could be on the cusp of a price rebound.

Network Growth, which measures the number of new wallets created on a blockchain network, has steadily climbed from 183 joiners on April 22, to 358 joiners on May 1. This suggests that the Uniswap ecosystem is garnering the attention of new users, and the demand for the native UNI token could rise in the days to come.

The Market Value to Realised Value (MVRV) ratio measures the valuation of a crypto asset in comparison to its realized value. When this ratio is low, as is currently the case with UNI, it hints to prospective traders that the market may be undervalued, potentially creating a buying opportunity. As the majority of investors that bought UNI in the last 30 days are now faced with unrealized losses of more than 7%, they will likely be unwilling to assume further losses and could, therefore, reduce the sell order pressure on UNI.

Nonetheless, UNI bulls must contend with the heavy resistance at various key levels. At $6.0, a large concentration of investors intent on selling at that price will have to be overcome. Should this level be breached, the bullish momentum could potentially drive UNI all the way to $6.03, where 11,500 token holders have their 13.7 million tokens stored. On the other hand, the bears can push down to $4.87 if the support at $5.18 fails.

The data, both on-chain and otherwise, suggests that a strong bullish wave is imminent for UNI. Although it will have to traverse a landscape littered with resistant holders intent on selling, if the bulls can break through these levels, a surge in price could be just around the corner.



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