Here’s when to expect Uniswap to start its journey at $ 30 and beyond

The price of Uniswap has been stagnating for some time now. On the weekly window, the DeFi token lost more than 6%, while on the daily period, the asset had already lost up to 3% of its value.

This made UNI one of the few non-performing large cap tokens this week. At one point, Uniswap accounted for almost 1% of the total market cap of digital currencies, but now that dominance number has fallen to as low as 0.66%.

Brewing interest

Despite falling prices and diminishing dominance, the number of transactions and the total number of active addresses have seen a noticeable increase in recent times. The old metric was seen at its monthly ATH of 3.41k transactions at the time of writing.

Total addresses, on the other hand, were seen as slightly off its monthly high of 1.99,000. To be precise, it was seen hovering around the 1.86k mark.

Well, the aforementioned metrics do not indicate whether market participants are buying or selling their tokens. However, a glimpse of the rising average balance indicated the lack of selling pressure.

Thus, the number of transactions and address numbers, together, show the emerging interest of market participants.

Source: IntoTheBlock

Do bearish signs turn bullish?

The state of the derivatives market also looked quite healthy at the time of publication. For example, the funding rate on most exchanges – both CEXs and DEXs, remained positive, implying that most traders were advocating the narrative.

ITB data further highlighted that the OI is quite close to its monthly high at the time of writing. High open interest rates indicate greater trader participation and emerging speculative interest.

Source: IntoTheBlock

The FTX Derivatives futures curve, moreover, portrays an interesting trend. The ITB chart attached below shows that the market has been in Contango for over a month now. Contango is a situation where the futures price of an asset is higher than its spot price. The same usually happens when the price of the asset is expected to increase over time.

The curve managed to slide down slightly during the period October 21-22, but managed to change direction at the time of writing. In the absence of any sign of a market backlash, UNI’s price is likely to end its downtrend phase and enter its uptrend phase soon.

Source: IntoTheBlock

So, keeping in mind the monthly ATHs of most measures, emerging interest and bullish signs, it can be said that market participants expected the price of UNI to rise for the foreseeable future. . If the market supports their narrative, the DeFi token should positively be able to move closer to the $ 30 mark and beyond, over the coming week.

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