You would agree that 2022 has not been the best year for cryptocurrencies. However, Uniswap [UNI], the automated liquidity protocol, seems out of place with that reality. After outperforming many of the top 20 coins in the second quarter (Q2), UNI is at it again.
At the start of the Q3, UNI began another excellent run. The coin price was $4.72 on 1 July. However, it took the same strength it had in Q2 to reach $5.62 on 8 July. That is not even the bone of contention. On 14 July towards 15 July, many of the top coins gained substantially.
After a short while, it was back to the red. Interestingly, UNI did not follow suit. At press time, the coin had gained 2.41% over the last 24 hours, while it maintained its 10.93% rise in the past seven days. So, will UNI take this excellent performance all through Q3, or is a reversal imminent?
True to its cause perhaps
From its four-hour chart, UNI seems to be sailing the coast brilliantly. The Relative Strength Index (RSI) at press time was 61.89, indicating a good buying momentum. While it had dropped from its overbought level of 74.85 on 15 July, the spot still reflected some buying pressure.
Despite the strong signal, there was no certainty that UNI would go to the $9.58 heights it reached in April.
Good chances or not?
With a price uptrend, expectations would be that UNI would also see an increase in volume. However, that was not the case. On-chain data revealed that UNI saw a rise in volume change between 14 July and 15 July. It rose from 215.58 million to 393.96 million within that period but dropped later. As of this writing, the trading volume was 269.03 million.
As with the market cap, UNI improved. It increased from $4.71 billion (15 July) to $5.06 billion at press time.
Source: Santiment
Network activity with Uniswap had also surged. Between 14 and 15 July, it increased from 444 to 475. However, it has remained constant at the same level it was. With this stability, it may seem that UNI may replicate its performance in Q2. While active deposits increased in the early hours of 16 July, it has sufficiently reduced.
Hence, these metrics may not support a continued price increase for UNI. However, the possibility of improving its last three months’ performance remains high.
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