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Uniswap: Assessing the prospects of ‘true’ recovery for UNI

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Uniswap: Assessing the prospects of ‘true’ recovery for UNI

The cryptocurrency market has been at its lowest since the beginning of May 2022. However, that is not the case for Uniswap. UNI hasn’t rallied or even projected any sort of momentum for almost a year now. 

A trip down Uniswap’s memory lane

Trading at $5.6 at press time, UNI seemed to be struggling to recover from the woes witnessed in May. In fact, it has already been placed under the critical support of $8.4. Tested multiple times in the past, this support level is essential for Uniswap if the token wishes to hike on the charts.

However, despite all the crashes and the dips, UNI did not see a single holder of the DeFi cryptocurrency leave the network. UNI HODLers remained where they were months ago.

Curiously, the total number of UNI holders didn’t just stay constant. Over the last one month, the total number of UNI investors has spiked by almost 3k. The number of Uniswap holders stood at 290k, at the time of writing.

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Furthermore, UNI holders are unfazed by the events of 9 May and are surprisingly still bullish on the asset. In the last 24 hours alone, about 1 million UNI amounting to a total of $5.6 million was bought by investors as the crypto “recovered” by a mere 3%.

Furthermore, one of the biggest concerns going forward is the asset’s correlation with Bitcoin. Sharing a correlation this high, Uniswap has placed its investors under the threat of bearishness should BTC ever drop again.

Trading at $29k at press time, BTC has the attention of every trader and investor now. Especially since a further decline would impact the entire market. However, a close above $30k could do the opposite trick.

The last time all UNI investors were together in profits was back in May 2021 when UNI peaked at $48. This will be unlikely this time considering the ongoing bloodbath in the market. 

In fact, the network-wide supply of UNI has also been sitting in losses for five months now. This may discourage new investors from entering, even at lows of $5.6. However, given the current situation, Uniswap is better off without more bearishness over the next few months.

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Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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What of Ethereum now that $1.4B worth of ETH are sold

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What of Ethereum now that $1.4B worth of ETH are sold

Ethereum [ETH], the king of altcoins has failed to register any significant improvement in the month of June. It is still stuck with the bears at the $1k level. Notably, this level was previously visited by the coin at a time when the market crash wiped out 46.4% of the ETH’s value. But with Q3 of 2022, circumstances might take a positive turn for ETH holders.

Ethereum needs a boost

Observing the entire Ethereum network, one can simply say that Ethereum needs a boost from its investors. Well, on the fundamental level, the network is making progress in all directions. Evidently, the arrival of ETH 2.0 and anticipation of ‘Merge’ has somewhat failed to accelerate ETH’s growth.

Thus, it’s important that the broader market cues turn positive at once since ETH is currently dependent on it. The bearishness prevalent in the market over the past couple of weeks has blocked Ethereum’s all attempts to rally. Consequently, investors have been forced to sell and prevent further losses.

In the month of June alone, about 1.3 million ETH worth over $1.45 billion was sent back to exchanges, most of which was a part of panic selling that was triggered by the crash of 9 June.

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However, most of this selling did not come from Ethereum’s loyalists, the long-term HODLers. Primarily, because the HODL waves made it evident that the one-month to three-month cohort took the charge of selling.

Their control over the supply reduced from 14% to a little over 9%, resulting in an increase in the domination of the HODLers who have held their supply for less than a month.

What is ETH looking for?

What Ethereum needs now is some patience from investors and a quick market-wide recovery. Patience because the investors need to hold off on moving their supply around until the mark price is at level with the buy price.

Doing the opposite of that may result in transactions that would be conducted at a loss, and such transactions combined have caused the spent output profit ratio to fall below 1.0.

Trading at $1,092 at press time, ETH needed to retrace its steps back to pre-June levels at the least to correct this decline, which may take a while considering the alt’s price decline of 5.2% in the last 24 hours.

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Source: TradingView

Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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FTT: Unraveling implications of recent drawdowns on technicals

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FTT: Unraveling implications of recent drawdowns on technicals

FTT’s bearish break below the $28.7-level led the alt to retest and eventually breach the $25-support (now immediate resistance). The recent patterned break took a plunge below the seven-week trendline resistance (white, dashed) on the 4-hour timeframe.

A compelling close below the $25-level could expose FTT toward a downside before any bullish revival chances.

Due to the relatively high correlation with Bitcoin alongside the broader sentiment, the altcoin could see trend invalidations. At press time, FTT was trading at $25.127, down by 8.12% in the last 24 hours.

FTT 4-hour Chart

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Source: TradingView, FTT/USD

From a near-term outlook, FTT’s rising wedge breakdown has pulled the alt below its 20 EMA (red) and the 50 EMA (cyan). Furthermore, a convincing bearish crossover of these EMAs could impair the near-term buying efforts. 

A close below the $25-level could aid near-term selling efforts to test the $23-$24 range in the coming sessions. However, an immediate bounce-back from the $25-zone could delay the bearish tendencies. In this case, the buyers would aim to test the 20 EMA near $26 before a reversal.  

FTT Daily Chart

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Source: TradingView, FTT/USD

In this timeframe, FTT saw a strong reversal from the 38.2% level. sustained close below the 23.6% level could propel a low volatility phase in the $24-$25 range in the coming days. Thus, the potential shorting targets would remain in the $24-zone. Also, with increasing trading volumes, the 24-hour losses depicted a rather strong bear move.

Source: TradingView, FTT/USD

The Relative Strength Index (RSI) plunged below the midline after barely sustaining itself above the 50-mark. Looking at its south-looking tendencies, the buyers still had a long way to alter the broader outlook in their favor.

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Also, the CMF dipped below the zero-line and reaffirmed the bearish strength. But any comebacks along its trendline support can aid near-term recovery efforts.

Conclusion  

Given the break below the $25-level on the H4 alongside the patterned break and bearish indications on the daily timeframe, FTT could test the $23-$24 range. The targets would remain the same as mentioned above.

Any bearish invalidations should likely find a rebounding region in the $26-zone. Also, investors/traders must keep a close eye on Bitcoin’s movement as FTT shares a 58% 30-day correlation with the king coin.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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Can Shiba Inu’s dissociation from Bitcoin help SHIB rally in Q3

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Can Shiba Inu’s dissociation from Bitcoin help SHIB rally in Q3

The second quarter of 2022 has come to an end. And with it, Shiba Inu [SHIB] successfully completed the third consecutive quarter making no significant progress on the charts. But with an exciting development taking place on-chain, there is a chance SHIB might make some progress over the next three months.

Shiba Inu is on a path

The meme coin was floating on its month-long rally from September 2021, which placed SHIB amongst the top cryptocurrencies. However, since then, a downtrend is all Shiba Inu has known, resulting in the 87.31% depreciation from its all-time high.

When observing on a micro-scale, the token seems to be doing better. However, the situation is no better than it was a month ago on the macro scale. SHIB has only managed to recover from the crash of June, which too is hardly sustainable, as the cryptocurrency dropped by another 9% in the last 24 hours.

Even so, what stands out is the fact that SHIB’s price action is imitating that of Bitcoin [BTC]. Although the intensity of the rise and fall are certainly varying, their patterns appear to be similar. 

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This is because up until a week ago, the meme coin shared a high correlation of 0.9 with Bitcoin, which resulted in the aforementioned similarities. However, at the time of writing, this correlation dropped to 0.52. Now if this metric drops further, it might give SHIB a fighting chance against the broader market’s bearishness.

Where does SHIB stand now?

An important observation to be made is the price indicators’ current status. The MACD’s bullishness is receding, and the altcoin is inching towards a bearish crossover at the same time. The active uptrend is also losing strength and will ultimately lose it if the Average Directional Index (ADX) falls below 25.0 (ref. Shiba Inu price action image).

Some counter to the aforementioned information comes in the form of buy and sell orders from investors where the former is outperforming the latter thanks to the recent rise.

Buy orders are currently exceeding the sell orders by at least 580 billion SHIB.

Regardless, considering the rise in Shiba Inu’s volatility, the coin appears pretty vulnerable to a price swing. Thus, investors looking to enter would be better off until there are clear indications of either a rise or a fall.

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Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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