Uniswap V3 was recently proposed to be deployed on the Celo Foundation’s native blockchain. On the development front, Uniswap is making progress. And investor interests seem to be getting stronger again.
Uniswap on the rise
After 48 hours of painting green, UNI reached $9 at the most. But at the time of this report, written off to trade at $8.88. (ref. Uniswap price action image)
In fact, the rally of the past three days seems to tempt investors to get back in business. Interestingly, the chain’s daily users have increased by 63% in the past 24 hours.
This is an intriguing change in investor behavior as their belief has seen a significant rise.
For starters, overall losses across the Uniswap network, which peaked around the last week of February, have fallen. But despite the reduction, the supply has not turned a profit. About one to 1.5 million UNIs are still lurking in the loss zone.
Uniswap network wide gain/loss | Source: Santiment – Coin-Crypto
Likewise, even though the risk-adjusted return has improved by 148.5%, it is still negative. The Sharpe ratio has risen from -4.20 to -1.69
Uniswap Sharpe ratio | Source: Messari – Coin-Crypto
But this rising confidence has not been recent. Since the end of February, approximately 600,000 UNI worth $5.2 million has been purchased by investors. And now investors seem to be in a zone where they can start making a profit. Consequently, UNI’s rate of change of ownership has also seen growth.
Uniswap offer on exchanges | Source: Santiment – Coin-Crypto
This behavior can continue provided Uniswap can maintain its price movement and continue its uptrend. It is currently approaching its 50-day SMA, which has been acting as a support since mid-November.
Attempts to break it have failed in the past, but if UNI can close above it and test it as support, there is much room for a massive rally.
But the possibility of a downtrend has not gone away either as the entire market has been confused in recent days about when the tide might turn from bullish to bearish.
Uniswap price promotion | Source: TradingView – Coin-Crypto