The Defi sector has been steadily gaining momentum over the last few weeks. Primarily, because the total value locked (TVL) climbed to a new all-time high of $276.92 billion on 9 November. However, at the time of writing, it stood above $269.77 billion. On a macro level, the Defi sector seemed to grow. Even so, Defi tokens saw a hard time of late, especially Uniswap. [1]
Lagging price action?
Uniswap has had a monotonous price action since early September. This, after the alt tested the $30 level and made its way down thereafter. In fact, on 28 November after recording a multi-week low of $18.5, UNI’s price saw a correction. At the time of analysis, the alt traded at $20.16.
Source: TradingView
Notably, over the last three days, Uniswap’s price has rallied by over 11%. At press time, the RSI rested in the oversold territory and looked northbound. It further aimed to break away from the long downtrend that lasted over twenty days.
Now, this price upswing could bridge the fair value gap (FVG) that extended from $20.3 to $24.5, if the alt’s rally continued. The $20.7 level, however, would be crucial for the alt as In/Out of the Money model denoted a lot of investors facing losses at $20.84.
In fact, around that price level, roughly 9000 addresses purchased over 183 million of UNI. Ergo, a move above this level would be key to removing sell-offs from this cohort.
Source: IntoTheBlock
Well, UNI still needs…
Uniswap’s MVRV 30-day and 7-day, currently present that participants were at a loss. However, the negative area where the MVRV 30-day treaded, was one spot where participants also accumulated the asset. Thus, suggesting that it is an excellent place to see UNI’s price grow.
Source: Sanbase
A U-turn in MVRV could
