Uniswap (UNI) is one of the altcoins that could see an explosive upside bounce given its recent dump marked the most pain for traders.
UNI currently trades around $7.62 as it mirrors the widespread positivity across cryptocurrencies on Friday. The token is up more than 6% in the last 24 hours, with its market cap reaching $4.5 billion.
However, at the time of writing, the daily trading volume was down 6% to about $125 million.
What are analysts saying about UNI price?
Crypto analysts at market intelligence platform Santiment say Uniswap, Shiba Inu, Polygon, Chainlink, XRP and Cardano are the top altcoins to dump most as prices fell.
This saw average traders lose, but now could offer the lowest risk amid suggestions of a bullish divergence.
The analysts point to the MVRV Z-Score, a metric that looks at a coin’s market value relative to its realized value.
In this case, RV highlights the value of all the UNI when the tokens last moved.
Traders use the z-score to identify potential market tops and bottoms – with higher scores indicating a coin is overvalued at the current price while a lower MVRV-Z reading indicates the cryptocurrency is likely undervalued.
According to Santiment, Uniswap currently ranks among tokens with the lowest MVRV-Z scores.
This suggests UNI is undervalued at prevailing prices and could surge in the short term. Shiba Inu, Polygon and XRP could mirror this price move.
UNI dip offers opportunity
As BTC rebounds above $67k amid the Bitcoin 2024 conference in Nashville, Tennessee, Ethereum is holding above $3.2k to signal recovery from Thursday’s dip. Meanwhile, Uniswap is up 6% in the last 24 hours and analysts predict it could be one of the altcoins to explode as the market rises.
A whale recently indicated a bullish outlook on Uniswap by purchasing 1.43 million UNI worth over $10.3 million.
The whale acquired the UNI tokens on Binance and proceeded to borrow $5.5 million in USDC on Aave. Lookonchain says this could suggest the whale is long UNI.
Uniswap price faces stiff hurdles ahead
Uniswap price rising by 6% in the past 24 hours has increased the number of UNI addresses currently in profit.
However, according to data from IntoTheBlock, 50% of all Uniswap addresses are out of the money at current prices while only 5%, or 15.88k addresses are at break-even price. The volume page shows is underwater.
In terms of price outlook based on this, UNI faces a major supply in the $9.17 to $15.96 region. The $15.40 area represents the resistance zone at the year-to-date high reached in March.
The gains capped an area where over 37.8k addresses purchased more than 465 million tokens at the average price of $11.91.
Source: IntoTheBlock
On the downside, a dip below $7.00 could see bulls rely on the primary support around the $6.01 to $6.81 price level.
More than 36.8k addresses purchased more than 37 million UNI at the average price of $6.33.
The post Uniswap eyes bounce amid bullish divergence appeared first on Invezz
