How Uniswap [UNI] landed at this same spot is no mystery — Here’s the catch

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Auto­mat­ed liq­uid­i­ty pro­to­col Uniswap [UNI] steered its way to where it was two weeks back, despite many of its coun­ter­parts record­ing good gains. Despite mak­ing huge waves a week ago, it was sur­pris­ing to see UNI’s price at the exact zone it was dur­ing the crypto-market’s capitulation. 

At press time, UNI was trad­ing at $6.54. The crypto’s price per­for­mance was par­tic­u­lar­ly under­whelm­ing as it failed to share both Bit­coin [BTC] and Ethereum’s [ETH] uptick on the charts. On the con­trary, Curve Finance [CRV], for exam­ple, record­ed an 11% hike in the last sev­en days.

Nearing the drop

Not only has UNI under­per­formed price-wise, its posi­tion per the Total Val­ue Locked (TVL) has been threat­ened too. Accord­ing to DeFiLla­ma, Uniswap’s TVL lost 13.63%of its worth in the last thir­ty days. Also, despite the fact that the TVL was $6.29 bil­lion on 10 August, the project’s chains seemed unpre­pared to face the hur­dle of main­tain­ing its fourth posi­tion on the rankings. 

At press time, Uniswap’s TVL was $5.65 billion.

Source: DeFiLla­ma

Now, while oth­er top DeFi pro­to­cols were also down per TVL, Uniswap reg­is­tered the most sig­nif­i­cant decline. Using Curve as a point of ref­er­ence, the lat­ter only lost less than 10% of its TVL value. 

Where next – Hinder or boost?

The pre­vail­ing momen­tum may be of dis­tur­bance to investors. Hence, it would be wise to assess where exact­ly UNI stands. On-chain data plat­form San­ti­ment recent­ly revealed that UNI’s Mar­ket Val­ue to Real­ized Val­ue (MVRV) was not in the best of states. With the val­ue at ‑6.04, it was obvi­ous that the real­ized val­ue was more than the mar­ket val­ue. In this instance, UNI has not made suf­fi­cient prof­its for investors to sell. 

As for its vol­ume, the ini­tial uptick to 152.1 mil­lion looks to have tak­en a step back. How­ev­er, con­clud­ing that UNI’s doom in the short term is inevitable would be wrong.

Source: San­ti­ment

A look at the altcoin’s price charts seemed to under­line the same.

Based on the crypto’s Rel­a­tive Strength Index (RSI), for instance, UNI was just act­ing in line after a for­mer overnight lev­el led to a reversal.

How­ev­er, the RSI had not com­plete­ly turned bear­ish. In fact, a look at the On-Bal­ance-Vol­ume (OBV) revealed that UNI was real­ly down per liq­uid­i­ty pumped into its ecosys­tem. The OBV, at press time, was 201.08 mil­lion— A point low­er than its lev­els ear­li­er in the week. 

Source: UNI/USDT, Trad­ingView

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