September 29, 2022


Analytics platform Santiment takes a look at two crypto assets that have posted three-digit percentage increases in a relatively short period of time.

Starting with decentralized finance (DeFi) platform UniSwap (UNI), Santiment says that the crypto asset has appreciated more than 150% in a period of almost two months.

“Uniswap has been very low over the past seven weeks, breaking away from the rest of the altcoin pack on several occasions and jumping +153% since June 18.”

According to Santiment, Uniswap’s daily address activity has increased and large holders of the crypto asset also continue to accumulate.

“It’s also great to see that shark and whale addresses have been garnering ever heavier percentages of Uniswap’s total supply since May. In particular, UNI addresses from 100,000 to 1,000,000 saw a huge increase in accumulation just two weeks ago. And soon followed constant price increases.

And speaking of whales, the amount of large trades (which we consider to be trades worth $100,000 or more) is also up to May levels. We can clearly see the large build-up of large whale trades that started forming a week ago, just before the big rally to $9.69.”

Source: Santiment

Uniswap is trading at $8.96 at the time of writing.

The crypto analytics firm says that while those who bought Uniswap 30 days ago are making double-digit gains, those who bought the crypto asset a year ago are still making losses.

Consequently, Santiment says that Uniswap may fall in price in the short term, but is still undervalued in the long term.

“We can see that the 30-day Market Value to Realized Value (MVRV) is currently up to +22.5%, which is well above the back-checked ‘danger zone’ of +15% or more . But even with medium-term trading returns starting to spill over, the good news is that long-term traders (at the 365-day MVRV) are still underwater. This means there may be an upcoming downturn in the next week or two for UNI, but its long-term future still appears to be undervalued.”

Source: Santiment

MVRV is the ratio of the current price and the average purchase price of the particular asset. An increase in the MVRV value indicates an increase in potential profits.

Santiment then it looks on Ethereum (ETH) Optimism (OP) scaling solution. According to the analytics firm, Optimism has undergone a “classic dump and pump” move, jumping slightly over 300% from a July low of $0.45 to a high of $2 in August.

Optimism is trading at $1.93 at the time of writing.

The analytics firm says Optimism could undergo a more than 30% correction to just above $1,297 in the short term based on Elliot Wave theory.

“Expect a correction around the bottom of wave four soon, but not more, as wave five tends to continue after that.”

Source: Santiment

Elliott wave theory states that the long-term trend of an asset’s price moves in a five-wave pattern while corrections move in a three-wave pattern.

Don’t Miss a Beat – Sign Up to Receive Crypto Email Alerts Directly to Your Inbox

Check Value Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check the Latest News Headlines

&nbsp

Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and that any losses are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured image: Shutterstock/Ekaterina Glazkova





Source link

Leave a Reply

Your email address will not be published.