A Word of Caution to All Potential Uniswap (UNI) Investors

A Word of Caution to All Potential Uniswap (UNI) Investors

As the cryptocurrency market recovers from the lows experienced after the June crash, most alternative tokens have recorded exceptional growth, Uniswap . Alternate blockchain technologies include Uniswap, Loopring, and VeChain. More specifically, Uniswap (UNI) has seen a meteoric rise in popularity over the past several weeks. As a result of this outstanding performance, UNI has a good chance of surpassing several alternative cryptocurrencies in value.

“Uninterrupted Potential Benefits”

After the crash in June that sent its price below $3.6, Uniswap bounced back in under 60 days. In that time period, it gained over 148%, allowing it to reach a current value of $9.05. What’s more, UNI has bounced back from its May lows and appears ready to make April’s losses moot. However, the alternative cryptocurrency may lack the necessary momentum to break through the $10 barrier.

This is due to the fact that the buying pressure that has helped propel the altcoin’s price higher will soon be exhausted. This story may be strengthened by the diminishing availability of UNI on trading platforms. During this article’s publication, this measure leveled down at a 7-month low of 59 million. Almost the past month, investors have bought over $37 million worth of UNIs, totaling over 4.2 million.

Even while the accumulation has continued up until the time of publication, it may soon slow down or stop altogether. Because the RSI (Relative Strength Index) indicates the token is fluctuating inside the overbought range after the current surge produced a wave of fear, uncertainty, and doubt (FOMO), the bullish trend has reversed. Although most investors are likely to be profit-seeking traders, they may decide to sell shortly, which might lead to a decline in price action.

And it’s possible that will occur sooner than expected. Over the past three weeks, Uniswap’s on-chain liquidations have been rather high. However, short liquidations reached nearly $3 million at one point in July, demonstrating that concerns about near-term liquidations continued throughout the month. Since then, there have also been consistent swings in volume.

Because the altcoin is destined for a collapse in the near future, new investors considering entering the UNI area may want to embrace cushion. The altcoin’s momentum is fading after a recent large bull run. And that’s typically after a token’s price has seen a massive increase. Traders can monitor widespread market indicators for signs of a likely market reversal.

Do you agree with the above assessment? If you have anything to say about this, please do so in the comments section.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.