{"id":40777,"date":"2021-09-24T17:47:31","date_gmt":"2021-09-24T15:47:31","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=40777"},"modified":"2021-09-24T17:47:31","modified_gmt":"2021-09-24T15:47:31","slug":"is-uniswap-uni-ready-to-take-off-after-a-painful-week","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/is-uniswap-uni-ready-to-take-off-after-a-painful-week\/","title":{"rendered":"Is Uniswap [UNI] ready to take off after a painful week?"},"content":{"rendered":"

Uniswap [UNI]<\/strong><\/a> had experienced a significant blockade in the past week that dragged its price below the psychological support level of $21.49<\/strong>. Its road to recovery has stalled after, what it appears to be, stuck in a consolidation phase before a breakout. But the Uniswap may be ready for a much-needed run-up, here’s why<\/strong><\/p>\n

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In fact, the crypto analytic platform, Santiment observed a minimal “panic” in the UNI market as several DeFi tokens took a serious plunge recently.<\/p>\n

According to its analysis<\/a>, UNI’s exchange inflow continued to remain high.<\/strong> However, Santiment noted that the token’s previous bottom attracted even more tokens to exchanges [one spike vs two spikes, as depicted in the chart below]. UNI transactions have been lagging as well which can be seen in Network Profit Loss. It further added,<\/p>\n

“Again, previous dump felt harder for UNI. Lessons learned.”<\/em><\/p>\n

\"Is<\/p>\n

Mapping Uniswap’s Retreat<\/h2>\n

UNI’s price was neatly positioned within the confines of a descending channel<\/strong> which is expected to pump the market higher. To top that, the ongoing consolidation signaled potentially increased volatility in the price of the DeFi token.<\/p>\n

The Chaikin Money Flow [CMF]<\/strong> appeared to be heading for the zero-line after weeks of heightened capital outflow from the UNI market. Even though the MACD<\/strong> flashed red, the bearish signs are receding. The daily Relative Strength Index [RSI]<\/strong> also formed a bullish descending channel which could indicate that sellers might have to take a pause.<\/p>\n

\"Is<\/p>\n

Market players can expect this consolidation to work out in favor of the bulls which could shift the market dynamics.<\/strong> Furthermore, there is little or no resistance ahead<\/strong> if Uniswap manages to breach the $21.49 level. However, a solid close below this level will potentially invalidate the bullish thesis<\/strong>. And a failure to recover may trigger a further low for the crypto-asset.<\/p>\n

On the other hand, the whale numbers holding 10k to 10 million UNI are rising at a rapid pace. Meaning these high-profile market participants are bullish<\/strong> on the asset’s price in near future.<\/p>\n

A growing concern – UNI Vs Sushi<\/h2>\n

There is no denying that the decentralized exchange [DEX] sector has matured significantly. Along the lines of progression, both Sushiswap and Uniswap have begun to differentiate in a big way.<\/strong> While Sushiswap is inclined towards the DeFi suite of products across multiple layer one and layer two chains, Uniswap is moving towards spot trading on ETH and second-layer solutions.<\/p>\n

Despite being a controversial clone of UNI, SUSHI has come a long way and has even outperformed the former across various metrics.<\/strong> Alex Woodard, the Research Analyst at Arca revealed that SUSHI’s average volume per user is substantially higher than that of UNI’s.<\/p>\n

Additionally, the market recovery in July and August saw volumes on Sushiswap rise by 169% while Uniswap volumes grew by 97%<\/strong>. Weekly traders on the former have also increased by 40% from the May trading volume high while the UNI user base has taken a hit is down -72%<\/strong>.<\/p>\n

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6) $Sushi<\/a> users also differ from $UNI<\/a> in terms of trading size. Sushi\u2019s average volume per user is significantly higher than Uniswap\u2019s. Combined with the point above means Sushi\u2019s user base is predominantly #DeFi<\/a> power users rather than a larger retail user base.<\/p>\n

H\/T: @hagaetc<\/a> pic.twitter.com\/Mmxl2Ty7Rg<\/a><\/p>\n

— Alex Woodard (@Crypto_Alex17) September 23, 2021<\/a><\/p><\/blockquote>\n