With the crypto market recovering from the lows of the June crash, many altcoins have seen unprecedented growth. VeChain, Loopring and Uniswap were some of these altcoins.
UNI, in particular, has risen significantly in recent weeks. So much so that it seems likely to replace several other altcoins in the rankings.
Uniswap is moving up the ranks
After nearly falling below $3.6 in June right after the crash, it took the altcoin just under two months to recoup all of its losses. In doing so, it rallied by more than 148.83% to reach its press time trading price of $9.005.
In fact, it recovered from May’s plunge as well, with the alt leading the charge to cancel the losses of the April crash. Even so, he may not have all the ammunition he needs to break the $10 mark.
This is because the buying pressure, which has been the altcoin’s biggest force all this time, is going to reach its saturation point soon.
This can be supported by the depletion of UNI supply on the exchanges. The same is currently at a seven-month low of 59 million. In the last month, over 4.2 million UNI worth more than $37 million have been bought by investors. This build-up could appear to be continuing at the time of writing, but could stop soon.
This may be because, as seen in the Relative Strength Index (RSI), the altcoin is currently overbought in the market due to the FOMO created by its rally. Since most investors are going to be profit-seeking traders, they could sell soon, resulting in the eventual decline in prices (ref. Unswap price action image).
This, it seems, could happen sooner than expected. On-chain liquidations, as far as Uniswap is concerned, have been quite high in recent weeks. Shorts liquidations in particular caused concern as at one point in July nearly $3 million worth of shorts were liquidated. The volume varied from the same.
Therefore, new investors looking to enter the market now may want to watch the market closely as a correction for UNI could be coming soon.