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

Automated Liquidity Protocol Uniswap [UNI] headed back to where it was two weeks ago, despite many of its counterparts posting good gains. Despite making huge waves a week ago, it was surprising to see UNI price in the exact zone it was in during the crypto market capitulation.

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

near the fall

Not only did UNI underperform price-wise, but its position relative to Total Value Locked (TVL) was also threatened. According DeFiLlama, Uniswap’s TVL has lost 13.63% of its value in the last thirty days. Additionally, despite TVL being $6.29 billion on August 10, the project’s channels seemed unprepared to face the hurdle of maintaining its fourth position in the rankings.

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

Source: DeFillama

Now, while other major DeFi protocols were also down by TVL, Uniswap saw the biggest drop. Using Curve as a benchmark, the latter only lost less than 10% of its TVL value.

What is the next step ? Hinder or stimulate?

The prevailing momentum may confuse investors. It would therefore be wise to assess the exact position of UNI. Santiment on-chain data platform recently revealed that UNI’s market value to realized value (MVRV) ratio was not the best of times. With the value at -6.04, it was obvious that the realized value was higher than the market value. In this case, UNI did not make enough profit for investors to sell.

As for its volume, the initial rise to 152.1 million seems to have receded. However, to conclude that the loss of UNI in the short term is inevitable would be a mistake.

Source: Santiment

A look at the price charts of the altcoin seemed to point out the same thing.

Based on the crypto’s Relative Strength Index (RSI), for example, UNI was just moving online after a former level overnight 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 by liquidity injected into its ecosystem. The OBV, at press time, was 201.08 million – One point lower than its levels earlier in the week.

Source: UNI/USDTTradingView

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