The last few months have been rather difficult for UNI. This DeFi token last recovered strongly in July-August, during this period the price on the chart rose by more than 120%.
The upward process didn’t take long, however. Since the good times are over, the UNI has been falling or trading sideways.
UNI 4-hour price table | Source: TradingView
As expected, most of the UNI indicators are on a downward trend. Market participants have little interest in this token. Indeed, the state of the number of transactions supported the above statement.
The index fluctuated around a multi-week low, but turned even worse on November 10th. As a result, the number of transactions is spinning to a multi-month low of 1.73k at the time of going to press.
Number of transactions | The source: IntoTheBlock
The pressure to sell has increased in the last few days as shown by the average balance and number of trades per side.
On November 10, the average value of tokens held by an address was $ 101,000. However, at the time of writing, the indicator is hovering around $ 78,000. In addition, according to order book statistics, more than 74,000 UNI tokens have been sold compared to the amount bought in 3 hours today. This is a sign of pessimistic market sentiment.
In addition, the fluctuation rate (assessment of OI and volume) has been flat in the last few days. This again shows a lack of dynamism in the market.
However, the curve of derivatives on the FTX exchange predicts an opposite trend. Looking at the attached chart, the market has been in a postponed buy state for the past week.
Hedging is a situation where the futures contract price of an asset is higher than its spot price. This situation often also occurs when the price of the Underlying is expected to increase over time.
On closer inspection, the curve bends after November 15. slightly to the south. However, it can remain stable around the 2% mark.
So as long as the curve does not enter the confines of a sell-off zone, derivatives traders have the potential to change everything for UNI.
Deferred Purchase / Delayed Sale | The source: IntoTheBlock
DeFi tokens often rise and fall together on the charts. So far, tokens like AAVE, MKR and YFI are becoming more active. At the time of going to press they are trading in the green after experiencing a red week together.
Should this upward movement prove to be consistent, the UNI boat could finally set sail, regardless of the current status of the indicators.
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Minh Anh
According to AMBCrypto
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