Uniswap decentralized exchange native token, UNI, has been predicted to gather a bear momentum that may set in the market anytime soon. This bear prediction follows a bullish rally that has been in the network protocol since June ending after bottoming out in June.
UNI Investor/Holders On Alert, Bull Momentum Exhaustion
Following the wild bull delivery by UNI, holders should be ready for a reversal as the bull seems to have been exhausted. Judging from the movement over the past three days, crypto experts are raising concerns about a possible bear.
Since the rally kickstarted in June in the token network, the trendline has been moving uptrend with little retracement or fluctuations. Even after the token was pulled back by the $5.5 resistance level, it demonstrated resilience and flipped back to its uptrend movement.
However, the momentum seems to be waning out, which are signal of another possible bear that may cause the token to revisit its all-time lows. Over 45% of the token is locked in smart contracts, which has increased since July. The token supply is down, and if the demand for the token remains constant or decreases, the market’s price may crash.
Glassnode platform also confirmed a mass fluctuation in the Uniswap trading volume. If the trading volume increases, then the demand may soar again. The token trend movement for the past few days have continues to predict/forecast possible bulls.
2022: Uniswap’s UNI Worst and Bearish Year
This year so far has been hostile towards the second largest protocol since its launch in 2020. The native token has witnessed a steep decline in its market price; the coin entered 2022 at $16.80. However, the token is currently down by over 50% from January 2022 price.
The token reached its all-time lows in May during the cryptocurrency market crash, causing the market price to drop below the $5.00 price zone. A few weeks after, the exchange protocol upgraded its liquidity, fee structures, and other elements, causing the token price to bull again. The investor’s interest and whale activity supported the bull run.
In the last week of June, the token surged by 9% from its all-time lows to reach $4.73, after which the rally continued moving. The total astronomical gains in the July rally have added up to 191%, a wild bull ever experienced in the token network.
The recent highs in UNI have continued to attract whales and investors and create more exposure for the token in the markets. According to CoinMarket Cap, UNI currently trades at $8.96, with a 2.56% drop in price in the past 24 hours.