Uniswap Faces Bearish Market as Price Plummets
Uniswap’s price has taken a meaningful hit, dropping over 20% from its May peak. As of July 5, UNI was trading at $6.95, a far cry from its November high of $20. this decline has slashed its market cap to $4.8 billion, down from last year’s $10 billion high.
The fall aligns with the broader altcoin sell-off. The market cap of altcoins, excluding Bitcoin, Ethereum, and stablecoins, has fallen nearly 30% this year. One reason for this drop is its shrinking market share in the decentralized exchange (DEX) sector. As an example, its 30-day DEX volume of $80 billion is less than half of PancakeSwap’s $160 billion. Hyperliquid, a competitor, handled over $220 billion in the same period. Other rivals like Raydium and Aerodrome Finance are also gaining ground.
On-chain data shows investors are selling UNI. The supply on exchanges has risen to 84.6 million, up from 69 million earlier. Whales, major investors, have reduced their holdings from 824 million to 723 million coins. This suggests they expect further price drops. The UNI funding rate is now negative, indicating a bearish outlook. Whale dumping and increased exchange balances signal a loss of confidence. The daily chart reveals a bearish flag pattern, hinting at a potential breakdown. The next key level to watch is the year-to-date low of $4.70.A move above $8.6 could change this trend.
Key factors include:
- Lost market share in the DEX industry.
- Increased competition from platforms like hyperliquid.
- Whales are offloading tokens, with holdings down from 824 million to 723 million.
Technical analysis shows a bearish flag pattern. A break below $4.70 could signal more declines. However, a rise above $8.6 could invalidate the bearish view.
For more insights, check Santiment data shows rising exchange balances and a negative funding rate, signaling lower future prices.The price has fallen from $20 to $6.98. A rebound above $8.6 could shift the trend. For updates, visit crypto.news for detailed charts and analysis.
Uniswap’s challenges reflect the crypto market’s volatility. Stay tuned for further developments.
