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Uniswap ($UNI) is one of the altcoins that could see an explosive upside bounce given its recent dump marked the most pain for traders.
$UNI currently trades around $7.62 as it mirrors the widespread positivity across cryptocurrencies on Friday. The token is up more than 6% in the last 24 hours, with its market cap reaching $4.5 billion.
However, at the time of writing, the daily trading volume was down 6% to about $125 million.
What are analysts saying about $UNI price?
Crypto analysts at market intelligence platform Santiment say Uniswap, Shiba Inu, Polygon, Chainlink, $XRP and Cardano are the top altcoins to dump most as prices fell.
📊 As crypto markets are showing serious bounce action on a bullish Friday, keep in mind where various assets stand in terms of average trading returns.
— Santiment (@santimentfeed) July 26, 2024
If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in… pic.twitter.com/ReNHwEWb84
This saw average traders lose, but now could offer the lowest risk amid suggestions of a bullish divergence.
The analysts point to the MVRV Z-Score, a metric that looks at a coin’s market value relative to its realized value.
In this case, RV highlights the value of all the $UNI when the tokens last moved.
Traders use the z-score to identify potential market tops and bottoms – with higher scores indicating a coin is overvalued at the current price while a lower MVRV-Z reading indicates the cryptocurrency is likely undervalued.
According to Santiment, Uniswap currently ranks among tokens with the lowest MVRV-Z scores.
This suggests $UNI is undervalued at prevailing prices and could surge in the short term. Shiba Inu, Polygon and $XRP could mirror this price move.
📊 As crypto markets are showing serious bounce action on a bullish Friday, keep in mind where various assets stand in terms of average trading returns.
— Santiment (@santimentfeed) July 26, 2024
If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in… pic.twitter.com/ReNHwEWb84
$UNI dip offers opportunity
As BTC rebounds above $67k amid the Bitcoin 2024 conference in Nashville, Tennessee, Ethereum is holding above $3.2k to signal recovery from Thursday’s dip. Meanwhile, Uniswap is up 6% in the last 24 hours and analysts predict it could be one of the altcoins to explode as the market rises.
A whale recently indicated a bullish outlook on Uniswap by purchasing 1.43 million $UNI worth over $10.3 million.
The whale acquired the $UNI tokens on Binance and proceeded to borrow $5.5 million in USDC on Aave. Lookonchain says this could suggest the whale is long $UNI.
Uniswap price faces stiff hurdles ahead
Uniswap price rising by 6% in the past 24 hours has increased the number of $UNI addresses currently in profit.
However, according to data from IntoTheBlock, 50% of all Uniswap addresses are out of the money at current prices while only 5%, or 15.88k addresses are at break-even price. The volume page shows is underwater.
In terms of price outlook based on this, $UNI faces a major supply in the $9.17 to $15.96 region. The $15.40 area represents the resistance zone at the year-to-date high reached in March.
The gains capped an area where over 37.8k addresses purchased more than 465 million tokens at the average price of $11.91.
On the downside, a dip below $7.00 could see bulls rely on the primary support around the $6.01 to $6.81 price level.
More than 36.8k addresses purchased more than 37 million $UNI at the average price of $6.33.
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