Uniswap [UNI] may be plunging, but this metric is reaching a new ATH

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Uniswap [UNI] may be plunging, but this metric is reaching a new ATH

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Uniswap may have bragged about its protocol seizing almost half of Polygon’s market share in just three months, but it doesn’t change the fact that the UNI token is deep in red territory.

Far from a UNI-ted front

At press time, UNI was changing hands at $8.45, after slipping by 4.89% in the past day and falling by 7.01% in the last week. Adding on to that, UNI supply on exchanges was up at press time, and has been increasing since about mid-April. This can help explain why UNI’s price has been dropping in the same time frame.

Source: Santiment

On the other hand, there’s one piece of good news for risk-averse investors. According to the Bollinger Bands indicator, the bands are coming closer together, which signals less volatility – but a possible breakout in the near future. That being said, the most recent red candle broke through the lower band, indicating that the asset might be considered oversold. This could prompt some traders to buy the dip.

Source: TradingView

Life ain’t treating you “whale”

One thing that investors should be watching right now is how UNI whales have been making transactions worth more than $1 million, since about 21 April. Considering that UNI’s price was recovering slightly at press time, it’s worth waiting and watching to see whether whales are accumulating or profit-taking.

Source: Santiment

However, one sign that’s definitely positive is that development activity for Uniswap has been climbing sharply since about mid-January this year. Adding to that, April has seen the project achieving new all-time-highs in terms of development activity. This shows that despite UNI’s falling price, developers have steady faith in the project – which is rising by the day.

Source: Santiment

Let’s ETH you out of here

With UNI hitting the exchanges, investors might be surprised to learn that the opposite is happening with Ether [ETH], which saw close to $3.9 billion entering the exchanges while almost $5.3 billion exited. This led to net flows of approximately -$1.4 billion.

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