What causes UNI price movement to fall despite the increased interest in the election?

  • UNI has remained one of the voters’ top choices.
  • Some gauges and market indices hinted at more bearishness in the coming days.

On January 31, Uniswap [UNI] It released details regarding its new Permit2 smart contract, a token approval contract that can share and manage token approvals for different smart contracts. According to the latest tweet, the Permit2 smart contract allows seamless token approvals via web3 dApps, making things easier.

Read Uniswap’s [UNI] predict the price 2023-24

With Permit2, users no longer need to perform multiple transactions when connecting to a new application. In addition, Permit2 also allows permissions to be set, which means that new protocols will only have permission for a customizable amount of time.

By the way, UNI has again become popular among whales. According to WhaleStats, a popular Twitter account that posts updates related to election activity, UNI was one of the 10 most purchased tokens among the top 100 Ethereum. [ETH] Whales, reflecting the whales’ confidence in the token despite the recent UNI price movement.

CoinMarketCap’s data He revealed that UNI has recorded a decline of nearly 2% over the past 24 hours, and at the time of writing it was trading at $6.48 with a market capitalization of over $4.9 billion.

Is the market to blame or something else?

A closer look at the on-chain UNI metrics revealed whether this negative price was caused by the current bear market or if something else was at work. UNI’s MVRV declined sharply on January 30, and appears bearish. In addition, demand from the derivatives market also declined as UNI’s DyDx funding ratio recorded a decrease.

Although UNI failed to increase its price, the positive sentiment around the token increased. Not only that, but CryptoQuants data It revealed that UNI’s foreign currency reserves declined, reflecting less selling pressure. On the other hand, active addresses increased, which reflects more users in the network, which also looked optimistic.

Source: feeling

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UNI: Looking forward

Like a few metrics in the series, market indicators for UNI also supported the possibility of further price declines. The MACD was bearish, showing a crossover in favor of the sellers. UNI’s On Balance Volume (OBV) recorded a decrease, which again was a negative sign. In addition, the Money Flow Index (MFI) was at the neutral mark.

But the EMA bar remained on the side of the bulls as the 20-day EMA was above the 55-day EMA.

Source: TradingView

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