Uniswap price tumbles, but UNI bulls refuse to back down: Here’s why

• Uniswap, the native UNI protocol has become the dominant decentralized exchange (Dex), overcame competitors like Raydium and others.
• Large holders continued to sell Uni. However, the accumulation of SPOT traders helped maintain the price relatively stable.
  

Support [UNI] In the last 24 hours he has remained hard. On the market, the asset decreased by 7.71%, extending the losses of last week to 11.297%.

A wider analysis of market activities suggests that the current bear trend may soon reverse.

Key indicators – for example, the increasing flow of liquidity, strong support of shoes and growing dominance of decentralized exchanges (DEX) – pattern on growing bull dynamics.

Uni gets dominance but sellers remain strong

The last 24 hours have been favorable for Uniswap because it has become a leading decentralized exchange (Dex) overtaking Raydium.

This growth and dominance on the market was followed by an increase in the total value of Uniswap locked (TVL), which increased from 4.924 billion to $ 4.959 billion – – – – – –An increase in $ 35 million. Meanwhile, Raydium’s Tvl has decreased by $ 52 million.

The total value of the locked (TVL) represents the valuation of blockchain protocols based on the amount of their native tokens that have been locked.

Despite the recent increase in TVL in the last 24 hours, UI prices have been driven by wider trends on the market.

Looking at the wider time frame of TVL, he has watched the trajectory down in the last three days, with the Uni sold of $ 219 million.

In addition, the outflows of liquidity were accompanied by a constant decline in the volume of trading. Since the 15th May reached a maximum of $ 3.504 billion, the volume of trading has decreased by more than $ 600 million, probably because of investors who came to the market.

Large holders also contributed to the recent price fall. Last day, this group of investors realized 980,580 UNI worth approximately $ 5.73 million.

This assembly sales pressure was supposed to cause a steeper price drop, but the bulls remain active on the market.

Who keeps the UNI price intact?

The bulls on the market, despite sales pressure, continued to bought Uni.

Spot merchants were the main contributor to the price stability of the Union and prevents it from witnessing a great decline. Over the last 24 hours, they have bought $ 12.28 million in the last 24 hours.

That’s not all, futures merchants continue to place long shops despite price chances.

To mention this in the perspective, some traders who longed UNI in the last 24 hours have lost $ 1.05 million, while short traders lost only $ 2500.

However, the open interest rate of financing, which compares open interest and the rate of funding for the purpose of determining the market direction, has remained in the bull territories.

At the time of writing, this read metric was 0.0054%. Although trends down, it remains in a positive area and confirms that there are more long positions than shorts.

What role will the performance of the ecosystem play?

Decentralized exchanges have seen a significant increase of 20%over the last month. This ascending trend continued until last week, but for the last 24 hours they indicate the first case of declining activity.

Despite this short -term immersion, the total market sentiment remains bull.

If traders and investors maintain their interest in the Union and actively participate in the protocol, the asset will probably see the rally.