UNI’s price remained stagnant for a long time. At press time, this DeFi token has only increased 0.2% in the past 24 hours but has decreased 3.7% for the week.

UNI 4-hour price table | Source: Tradingview

This makes UNI one of the few large-cap tokens that are dormant this week. At one point, UNI accounted for almost 1% of total cryptocurrency market capitalization, but now that dominance has dropped to just 0.68%.

Market capitalization dominance of UNI | The source: Messari

Interest increases

Although price and dominance are falling, the number of transactions and the total number of active addresses have so far increased noticeably. Additionally, the number of transactions reaching ATH monthly at the time of writing is 3.41,000 transactions.

On the other hand, the total number of addresses is slightly below the monthly high of 1.99,000 and is currently hovering around the 1.86,000 mark.

However, the above numbers do not give any indication of whether market participants are buying or selling tokens. On the other hand, the observation of the increase in the average balance shows no selling pressure.

Therefore, the number of transactions and the number of addresses reflect the interest of market participants.

Number of transactions | The source: IntoTheBlock

Signs of a Bear Turning Bullish?

The situation on the futures market also looks quite healthy at the time of writing. For example, the funding rate remains positive on most exchanges (both centralized and decentralized), suggesting that most traders are in favor of the bullish narrative.

Funding rate | The source: IntoTheBlock

ITB data also shows that open interest is currently staying pretty close to monthly highs, suggesting that traders are more engaged and speculative interest is building up.

Open contract | Source: IntoTheBlock

The growth curve of FTX derivatives also shows an interesting trend. The ITB chart below shows that the market has been operating in a buy holdover for more than a month. Hedging is a situation where the futures contract price of an asset is higher than the spot price. This also often happens when prices are expected to rise over time.

The curve slid a bit down between Oct 21-22 but was changing direction at the time of writing. If there are no signs that the market is entering a sell-off position, UNI price will likely stop the downward phase entirely and enter the upward phase soon.

Deferred buy / deferred spread | Source: IntoTheBlock

Given that most indices are hitting monthly ATHs, interest rate formation and bullish signs, it is safe to say that market participants expect the UNI price to rise in the near future. If the market backs this narrative, this DeFi token should be able to move towards the $ 30 mark and beyond for the next week.

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