Will Uniswap and Optimism’s Massive Crypto Rallies Continue? Santiment Analyzes Top Ethereum Altcoins

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Ana­lyt­ics plat­form San­ti­ment is look­ing at two cryp­to assets record­ing triple-dig­it per­cent increas­es over a rel­a­tive­ly short peri­od of time.

Start­ing with decen­tral­ized finance (DeFi) plat­form UniSwap (UNI), San­ti­ment says that the cryp­to asset has appre­ci­at­ed by over 150% over a peri­od of near­ly two months.

“Uniswap has been on quite the tear in the past sev­en weeks, decou­pling from the rest of the alt­coin pack in sev­er­al instances, and jump­ing +153% since June 18th.”

Accord­ing to San­ti­ment, the dai­ly address activ­i­ty of Uniswap has risen and large hold­ers of the cryp­to asset also con­tin­ue to accumulate.

“It’s also great to see that shark and whale address­es have been accu­mu­lat­ing heav­ier and heav­ier per­cent­ages of Uniswap’s over­all sup­ply since May. The 100k to 1m UNI address­es, in par­tic­u­lar, saw a mas­sive accu­mu­la­tion spike just two weeks ago. And con­tin­ued price ris­es soon followed.

And speak­ing of whales, the amount of large trans­ac­tions (which we deem to be trans­ac­tions val­ued at $100,000 or more) are ris­ing back to May lev­els as well. We can clear­ly see the major clump of big whale trans­ac­tions that began form­ing one week ago, just pri­or to the major price rise up to $9.69.”

Source: San­ti­ment

Uniswap is trad­ing at $8.96 at time of writing.

The cryp­to ana­lyt­ics firm says that even though those who bought Uniswap 30 days ago are in dou­ble-dig­it prof­its, those who pur­chased the cryp­to asset a year ago are still in losses.

Con­se­quent­ly, San­ti­ment says that Uniswap may fall in price over the short term but it is still under­val­ued over the long run.

“We can see that the 30-day Mar­ket Val­ue to Real­ized Val­ue (MVRV) is cur­rent­ly up to +22.5%, which is well above the back­test­ed ‘Dan­ger Zone’ of +15% or more. But even with mid-term trad­ing returns begin­ning to over­flow, the good news is that long-term traders (in the 365-day MVRV) are still well under water. This means that there may be an upcom­ing down­turn in the next week or two for UNI, but its future for the long-term still looks to be undervalued.”

Source: San­ti­ment

MVRV is the ratio of the present price and the aver­age acqui­si­tion price of the par­tic­u­lar asset. An increase in the MVRV val­ue indi­cates a rise in the poten­tial profits.

San­ti­ment next looks at Ethereum (ETH) scal­ing solu­tion Opti­mism (OP). Accord­ing to the ana­lyt­ics firm, Opti­mism has under­gone a “clas­sic dump and pump” move as it soared by slight­ly over 300% from a July low of $0.45 to a high of $2 in August.

Opti­mism is trad­ing at $1.93 at time of writing.

The ana­lyt­ics firm says that Opti­mism could under­go a cor­rec­tion of over 30% to a price of just above $1.297 over the short term based on the Elliot Wave theory.

“Expect a cor­rec­tion to around the bot­tom of wave four soon, but not more, as five waves tend to con­tin­ue after that.”

Source: San­ti­ment

The Elliott Wave the­o­ry states that the long-term price trend of an asset moves in a five-wave pat­tern while cor­rec­tions move in a three-wave pattern.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Fea­tured Image: Shutterstock/Ekaterina Glazkova



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