Uniswap Price Analysis: UNI Could Potentially Rally To $50 On Strong On-chain Fundamentals

Last Updated September 15th 2021
3 Min Read
  • Uniswap price recovery stalls under the 50-day SMA, slowing down the uptrend eyeing highs above $30.
  • The profit or loss ratio suggests that UNI is in the buy zone, while a spike in the active addresses on the network would bolster the uptrend.

Uniswap’s recent drop to $20 quickly became a buy the dip for investors, resulting in an immediate rebound to $26. In the last couple of weeks, projects in the decentralized finance (DeFi) sector have been gaining traction, bolstered by a calm atmosphere from the non-fungible token (NFT) arena.

Meanwhile, UNI is trading around $25 after running into a 50-day Simple Moving Average (SMA) barrier. If the overhead pressure intensifies in the ongoing and coming sessions, we can expect the DeFi token to revisit levels toward $20.

It is worth mentioning that the 100-day support is in line to prevent a massive breakdown from slashing all the gains made in the last two days. On the other hand, fundamentals from the on-chain analysis suggest that Uniswap is still in the buy zone and could spike into a rally to $50 in the near term.

Uniswap Price Prepares For Colossal Liftoff To $50

The market value realized value (MVRV) by Santiment has started to recovery after falling to -20 on September 9. This metric highlights the profit or loss ratio of the holders of Uniswap. At the moment, the MVRV holds at -9.69% while gradually closing the gap to zero. A low MVRV figure is indicative of UNI being in a buy zone because most holders are likely to hold as they face losses.

Uniswap MVRV Metric In The Buy Zone

 Uniswap MVRV Metric In The Buy Zone 091521

Over the last few days, the number of newly created addresses on the Uniswap network has recovered from the recent dip to 716 on September 13. Currently, these addresses stand at 868, a move that marked UNI’s upswing from $24 to $26.

Previously, unique addresses joining the network bottomed out at 685 on August 27, followed by an uptick to 1,020 on September 3 and a subsequent price rally from $25 to $30.5. This shows that bulls gained momentum to sustain the uptrend as new addresses joining the network increased.

Uniswap Network Growth

 Uniswap Network Growth 091521

According to Santiment’s network activity on-chain model, the number of addresses interacting on the protocol has also shot up to the levels last seen on September 12. The volatility in the market on Monday and Tuesday this week saw UNI’s network activity drop to 1,802 active addresses per day. At the time of writing, the addresses stand at 2,211.

Uniswap Network Activity

 Uniswap Network Activity 091521

A spike in network activity reflects a surge in investor speculation, a move that often leads to continued upward price action.

Meanwhile, the general technical view is slightly leaning to the bearish side, accentuated by the resistance at the 50-day SMA and the 50% Fibonacci level. The Moving Average Convergence Divergence (MACD) also highlights a sell signal that may hamper growth in the near term, as observed in the chart.

UNI/USD Daily Chart

 UNI/USD Daily Chart 091521

Therefore, securing higher support must be the bulls’ priority if Uniswap is to rally above $30 in the short term. A daily close above the 50-day SMA and the 200 SMA would be crucial to the uptrend. Further up, trading above $30 and the 61.8 Fibonacci level will enhance the bull’s grip on the price and preparing Uniswap for gains to $50.

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